Trading Set-Up for the Week
Without taking a clear direction DAX is still going sideways. Regarding tehcnicals, it is approching the end of the recent weekly triangle it has formed. It should at least approach the top of it, where we may close the position. In terms of fundamentals they should support an upward movement as the corporate results and macroeconomic indicators remain solid.
US Dollar Index
US Dollar Index continues bouncing back and forth. Hence, for now we remain bullish after retesting the monthly bearish trend.
EURUSD continues its clears downtrend and just broke small weeklt support which even confirms strongly the strength of this bearish trend. So that, we remain bearish anbd still hold the short the position.
GBPUSD drops and we hold the short. Continuies its clear downtrend without any relevant support in the horizon which confirms the long path of this short. For now we keep holding and waiting for the perfect moment to cash out.
After breaking a key monthly bearish down trend USDJPY and then retesting it, it has formed a clear breakout pattern which is taking time to take off. For now, we remain patient and wait for the continuation of the bull trend.
The huge increase of concerns about inflation has mainly been due to Trump’s proteccionism and high oil prices. As tarde wars lower so has to do oil prices in order to lower concerns about inflation. From the technical side it remaind as clear breakout formation after the retest of the monthly bull trend.