Dollar slips as rate hike sights January; still remaining strong

Apologies for the lack of posts over the past few days. I have been keeping busy and was unable to properly sit in front of my charts and update them. Regardless of the Grexit situation, we have a few pending setups to watch out for at the moment.

The U.S Dollar Index gained 0.89% from the Non-Farm Payroll release. Unemployment rate fell to 5.3% and 223,000 jobs were added despite disappointing the consensus of 231,000.

U.S. Dollar Index
U.S. Dollar Index

MACD crossover is confirmed and the relative strength index sits above 50. Overall, a good sign for the U.S. Dollar strength.

EURUSD 6-Hour
EURUSD 6-Hour

The Euro has been through some very intense swings lately and we’ve finally seen enough movement to consolidate the pair. Two trend-lines converging and price will just eventually soar out of one side. At the moment, I remain bullish as we look for a bottoming out on the daily time frame.

EURUSD 6-Hour
EURUSD 6-Hour

After the sell-off, EURUSD has been making higher lows and breaking new highs. As long as this pair doesn’t break out lower, I see strength in this pair and would ease on any selling or at least keep selling to the short term.

GBPUSD 3-Hour
GBPUSD 3-Hour

I would be looking to go short at the moment as the price breaks below the current range. The trend-line I drew really isn’t necessary as this pair is no longer in an uptrend as it has broken to a new low. Switching to a longer term time frame, you will notice the GBPUSD pair to be in an uptrend and so this is where the Fibonacci retracement comes in. I’m currently using it to scale out short positions and finding positions to enter long. I will definitely combine this with demand zones at a later date. For now, I have not because it is not my main pair of focus.

AUDUSD 3-Hour
AUDUSD 3-Hour

Currently entered into a conservative long position just playing off of this support zone. If you notice in this 3-hour time frame, this pair is pretty much in a range right now with different upper range boundaries. Nevertheless, I am currently in for a quick trade and let’s see how this goes.

USDJPY 1-Hour
USDJPY 1-Hour

Finally, we have a very nice downwards sloping channel over on the USDJPY pair. The lower channel boundary marks quite an extreme area and so I’ve actually added another trend-line showing a more plausible short target for those looking to sell this pair. There isn’t much movement right now so I have not entered in an appropriate position just yet.

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