Spot Forex Market – OverviewAugust 7, 2016
The Dow Jones FXCM Dollar Index touched a critical resistance level at 12 001 (high = 12 006) on May 30th 2016 where after it nose-dived south past the 11 878 price level to open the way for dollar bears.
Selling pressure remains on the dollar as long as price trades below the 11 878 level. Looking at the other major currencies (eurusd + gbpusd + audusd), they all started in a clear direction to trade north with usdjpy & usdcad trading south (dollar weakness).
I expect this technical move to continue south (dollar weakness) as long as the the Dow Jones FXCM Dollar Index stay below the 12 006 high.
Note: The horizontal red line with the number “4” indicates the price below 12 006.
I expect that the Index will at least target the 11 701 price level (see green horizontal line at bottom of the chart) with a possible extension to pass the low of 11 672 that we have seen on May 3rd 2016.
Johann has been trading Forex for over a decade. He has managed offshore accounts for a local firm out of Salt Lake City in the USA, as well as trading on his own account in his private capacity. He got his first taste of the markets through Share Direct and after finding great success in his career he has returned to train others in the art of trading.
Johann also trades CFD’s, indices and local equities but it is really more of a hobby to him.