[thalestrader]

Daily view of the US Dollar Index - Looks to be in a little "bull flag" type consolidation. Two trendlines to clear and just minutes to NFP.

Tonight's business news headlines might be speaking of the "Unexpected Strength of the US Dollar."

Best Wishes,

Thales

[thalestrader]

Daily view of the EURUSD - basically the inverse of the US Dollar. The market is selling dollars and buying Euros in response to NFP. Now its a waiting game to see whether or not that follows through, reverses, or, as sometimes happens, the move is over for the day and its time to call it a weekend.

Best Wishes,

Thales

[thalestrader]

This is a great example of what I mean when I say that the market cycles between periods or range expansion and range contraction (and I am not taking credit for the observation).





Best Wishes,

Thales

[fxThunder]

Update on earlier GU long: target reached.

Cheers,
eNQ

[thalestrader]

Originally Posted by EminiNQtrader »

Update on earlier GU long: target reached.

Cheers,
eNQ

Excellent trade, EmNQ, Congratulations!

Best Wishes,

Thales

[thalestrader]

Two nights ago a sold the 6E (chart shows spot EURUSD) short soon after the Tokyo open, and it took nearly 36 hours to decline to the profit target. Then, in less than 30 minutes, it recovers the entire decline, finding (momentary?) resistance at that prior break down point. This is a remarkably impulsive, remarkable rally. If it has exhausted itself, this would be a good place to rest (or reverse). I haven't been able to catch my breath, myself.

Best Wishes,

Thales

[thalestrader]

And in spite of the fireworks, nothing has changed with respect to the daily views. For now, the US Dollar is in a nascent uptrend per the daily view and the EUR is in a nascent downtrend per the daily view. Each has been consolidating in a range that implies a cntinuation of those new trends. However, I always remind myself that the longer price consolidates, the more likely it is to reverse rather than continue. Neither of these have been unusually long, however, and the levels that would confirm continuation or warn of reversal are clearly visible on the chart.

As Firewalker's excellent thread taught - "all you need is a chart."

Best Wishes,

Thales

[thalestrader]

a short on the EURUSD after all that ...? (I'm not trading this short, by the way, but I am watching).

Best Wishes,

Thales


EDIT: I took it short very small size in the micro account at 1.4373, stop is 1.4395, and stop will be trailing with no set profit target.