FOREX PRO WEEKLY, February 05-09, 2018

Good morning,

So, yesterday 4H grabber has made the day. Initially we've treated it as small concern, but, as soon as it was confirmed - it has prevented any attempts to go long.

Today we will take a look at Dollar index, but you could spread this analysis on EUR as well. I like DXY more right now, as it has better picture and it is better agreement between different technical tools.

On daily chart we have thrust down and now DXY stands at Fib level and OB area. This is potential situation for deep 5/8 retracement, somewhere to 89 area. In fact, here we have as bearish "Stretch" as B&B "Sell" at the same time:
dxy_d_08_02_18.png


At the same time, on hourly chart major XOP target has not reached yet and within few hours this should happen. Upward action could be finalized by minor butterfly "Sell" pattern. This is chance to go short:
dxy_1h_08_02_18.png
 
Morning guys,

as stocks has dropped again yesterday - another support was provided to CHF, JPY and Gold market. Yesterday we've talked on DXY, so, let's today take a look at EUR.

Although short position has been taken on DXY, but as you can see it mostly stands flat. This is due EUR, since it takes more than 50% of DXY. On daily chart of EUR everything mostly stands the same - we expect deep retracement up:
eur_d_09_02_18.png


But it can't get started as EUR has not quite reached yet major XOP target at 4-hour chart. (DXY did it). So, as EUR is creeping lower, DXY also can't start retracement, it is 'waiting" when EUR will hit the target:
eur_4h_09_02_18.png


So, setups are mostly the same as on EUR as on DXY. Thus, if you like EUR more - you still have chance to make the same trade. Personally I have position on DXY...

On hourly chart it is big temptation to call it "diamond" pattern. But... we have uncompleted 4H XOP and here we have clear signs of bearish dynamic pressure - trend is bullish, why price action stands flat.

That's why I place a warning here - beware of butterfly, as another final leg down could be formed before retracement will start:
eur_1h_09_02_18.png
 
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