Key factors:
- DXY broke out and has the potential to touch the daily 61.8% Fib level
- Retail traders heavily short against USD -> further $ appreciation
- Key risk event: ECB press conference (24-Jan) -> in case ECB sends dovish signal, $ moves higher
Trade setup:
- if USD appreciates, wait until daily 61.8 level + bearish candlestick -> go short
- If no further $ appreciation, wait for the ECB press conference. If no dovish signal is sent, go short from around the 50% Fib level.
- DXY broke out and has the potential to touch the daily 61.8% Fib level
- Retail traders heavily short against USD -> further $ appreciation
- Key risk event: ECB press conference (24-Jan) -> in case ECB sends dovish signal, $ moves higher
Trade setup:
- if USD appreciates, wait until daily 61.8 level + bearish candlestick -> go short
- If no further $ appreciation, wait for the ECB press conference. If no dovish signal is sent, go short from around the 50% Fib level.