Don't Be Too Quick To Short The Dollar

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Yes, DXY closed with a strong weekly bearish engulfing candle, in fact, the first bearish candle close in 2 months. While this is a strong indicator of what's been a highly anticipated correction lower, if price action on the daily continues to trade higher aggressively, then we may see a short term rally before price sell's off.

Despite this uncertainty, I see plenty of opportunity early in the week across the board. Here's how I'm positioned after Monday's development:

DXY - LONG
EURUSD - SHORT
USDJPY - LONG
GBPJPY - SHORT
AUDUSD - NEUTRAL

Penafian

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