Today, we will analyze the technical situation for three indexes. Analyzing an index is a great option to check the general sentiment towards one particular currency. We can later use it to trade many other interesting instruments.
Let’s start with the most popular one – . Most recently, USD found a very strong resistance – mid-term down trendline and the 38.2% Fibonacci. Only the fact, that the price met the resistance is not enough to be bearish – you need some sort of a rejection or a bounce from those high levels. To be honest, this is exactly what we got thanks to two daily shooting star candles. As long as we stay below the green line, the sentiment is negative.
The next instrument is the –the index. Here we have a very handsome technical pattern, promoting a bullish reversal. This formation is an inverse head and shoulders. It is already up and running as overnight, we broke the neckline, which in theory brings us a buy signal. The closest target is on the highs from December.
Now, the with the . Here, we have two bearish signals but we are still waiting for the main one, which would give us a great trading occasion. First of all, we broke the lower line of the triangle. What is more, we broke the up trendline. The one thing that is missing is the breakout of the major horizontal support. Once that happens, we will have a legitimate occasion to go short.
3 Forex Indexes In Focus: Dollar, Euro And Pound
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.