Price action analysis us dollar weak

Posted by on Aug 12, 2012

By David Ruscelli


This post in italian

Welcome to the price action and technical analysis daily post, committed to trade forex for the newx week.

 USDOLLARINDEX

It’s formed a pin bar under 10.34 points. It could mean that us dollar will get more weak next week, therefore we will see counter-party get strength.

I remember that dollar index describe the strenght of the us dollar against other currencies, and it’s inversely correlated to the most of the forex couples. For example eur/usd o nzd/usd o aud/usd o xau/usd, when dollar index get weak, they get strong and we see uptrend market movements.

Talking about this index, if it will break 9.980 we could see it short up to 9.900.

USDOLLARINDEX D1

 

NZD/USD

For kiwi forex, not the fruit :-), NZD/USD we’ve seen in the prevous days a false pin bar. As we said in the last analysis post we were waiting for a stronger signal in a better position. It looks like listened us. it’s formes a good pin bar supported on 0,8090. I think it is a good setup for trade long, because we have uptrend , small retracement flag, and obvious pin bar on the support 0,8085. target profit could be 0,8250

NZD/USD D1

 

GOLD

Here we are in a range market from many monthes, from about 1620 to 1540. Recently the gold looks like get strenght against usdollar (maybe because us dollar is recently more weak) therefore we could see in the next days a breakout of the very strong support at 1620. If it will happen we could see gold at 1700 or even 1800 or 1900 dollars oz. It’s from a long time we are waiting a recovery of the gold strenght. Friday pin bar give us a prompt in this way. Don’t trade it, it’s just below a very very strong resistance at 1620, but anyway it give as an idea on what could happen in the next trading sessions.

GOLD D1

 

EUR/USD

About Eur, it’s trapped between 1,2430 and 1,2170. Until it won’t break one of this key levels, we will stay out of it.

If break upper we could see it up to 1,2660, otherwise 1,1900.

 

That’s it for today. Have a good trading!

 

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