Weekly Market recap 11: Getting ready for the next leg
What's happening
We've been consolidating for two weeks already, with the last week being more of downward pressure. The broad markets are consolidating near their respective resistance/support areas. The ultimate event I'm waiting for is the breakdown of 90.50 support and the continuation of the downtrend in DXY. I believe when we see that breakdown, the trend momentum opportunities will come in many fx pairs and stock indices.
Strategy
During the consolidations like now, it pays off to be patient and particularly picky, as the moves tend to be not lengthy and often choppy. For breakout traders, it's better to focus on the short-term consolidations with the numerous confirmation signals from the price action, and conservative profit targets.
We've been consolidating for two weeks already, with the last week being more of downward pressure. The broad markets are consolidating near their respective resistance/support areas. The ultimate event I'm waiting for is the breakdown of 90.50 support and the continuation of the downtrend in DXY. I believe when we see that breakdown, the trend momentum opportunities will come in many fx pairs and stock indices.
Strategy
During the consolidations like now, it pays off to be patient and particularly picky, as the moves tend to be not lengthy and often choppy. For breakout traders, it's better to focus on the short-term consolidations with the numerous confirmation signals from the price action, and conservative profit targets.