US Dollar Showing Signs of Technical Weakness
This is a recording of a webinar from January 16, 2017. To attend a live webinar with Jeremy obtain your free registration here.
In this webinar, we used technical analysis and namely, Elliott Wave Theory to identify trends to watch out for in 2017.
First of all, in last week’s webinar we discussed how the pivot near resistance in EUR/USD on December 30 creates an important technical level. The high on December 30 was 1.0654 and if this high gets taken out, then we’ll begin to shift our bias towards the long side. Last Thursday’s price action did clean out 1.0654 so we are favoring a bullish move higher toward 1.0875-1.1000.
Secondly, USD/CAD has penetrated the lower bounds of its upward sloping price channel. Currently, the pair is testing the 200 day simple moving average. The technical patterns appear bearish so we’ll use strength to consider positioning short. The area of attraction is 1.32-1.33. We won’t rule out a move to 1.34. A break below Thursday’s low of 1.3029 opens the door to much lower levels.
Lastly, AUD/USD sentiment flipped net negative last week for the first time since early November 2016. This flip short means more traders are not short the pair than who are long the pair. AUD/USD appears to be in the early stages of a 5 wave impulsive move higher. Don’t be surprised if prices dip back towards .73-.74. We expect the dip to be a partial retracement of the 2017 run higher.
Lastly, we talked about 2017 Top Trading Opportunities and the 2016 Top Lessons. Grab those guides and additional learning material on Elliott Wave theory at this link.
If you wish to learn more about Elliott Wave theory, grab our beginning and advanced guides here.
If you wish to join Jeremy in his US Opening Bell webinars in 2017 to discuss chart patterns and updates to these patterns, register and join here.
Links provided in the webinar:
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.