This chart was produced by our team, it shows the EUR (inverted, ORANGE LINE) and the DXY index. The count has a possible CORRECTIVE wave in it, before we RESUME higher on the DOLLAR trend. This correction could take the EUR to 1.1650/1.1690. At that point we will happily sell it.
Markets have HEAD FAKES, that is part of trading. To be SUCCESSFUL one has to identify these moves and be fairly quick doing so. We will evaluate all charts this evening. It is ok to make mistakes, it is NOT OK TO CLOSE YOUR EYES AND BE TOO VIEW DRIVEN (BIASED) TO REALIZE WHAT PRICE IS TELLING US.
This does not mean that the USD will sell off immediately, this just means that there is a possibility that we may see a DEEPER correction in the USD. The price action post POWELL’S announcement was very EYE OPENING. We have to pay attention and not let VIEWS get in the way of RISK MANAGEMENT. First and foremost, we manage RISK, that is our job, and to do so successfully one has to divorce oneself from biases and deploy risk capital based on SOUND SET UPS.
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