Forex Trading Insights: Bearish Dollar Below Moving Averages 11-9-23

Transcript

So what we’re looking at today is we actually have the dollar at a place that we’ve seen it before. We’ve seen the dollar at this same exact place before.

And so one of the things that was just shared on a coaching call that we have on Wednesdays is that we have the 20 period moving average here. And because of the, at the time it was sitting on its 20 period moving average. But what I was sharing is that the natural bias with it being underneath all of its moving averages and because of the move that it’s had off of the weekly open and off of the wild card area, naturally the biases as far as off of this bounce is if it does not show strength through that longer period moving average, being the 20 period moving average, then it’s a rejection.

And so again, it made two attempts here. So after that comes back down here to the 20 period moving average and is now getting rejected from the 20 period moving average. So tomorrow we do have Powell speaking again.

And so when Powell speaks again, we’ll see how the dollar responds to him speaking later on in the day. We also have for the euro. We have there as far as President Lagarde, that speech being there in the afternoon as well as at night, we have for the Australian dollar, we have their monetary policy statement.

And so all of those will move each particular currency. But what we’re watching, again, we’re looking to see what the dollar does. We talked about this earlier on the call as well.

So again, underneath 138, it will need to be caught by a moving average because the next location underneath it is a major quarter area. So it will need to be caught by a moving average here in this area because there’s nothing else to catch it. And so its moving average will need to catch it here in order for this to continue.

And then we also see for the UJ idea, again, this rejection at 151.

And so we’ll see how this continues to respond at 151 because again, we have been getting some nice little consolidation here in between 151 and the minor quarter level of 150 75. So again, another area for us to watch there, we also have for the other ideas that we share that have news that’s coming out as far as the euro being one of them, the euro here above 107.

So again, looking to hold 107 does have its 100, getting ready to cross over its 200. That would put all of its moving averages in order. This one is down for the week.

So that is something to be mindful of because again, that area, depending on what is said, that area could be the particular area of sell off. Or this area could be the area where new buyers decide to show up and push price up again right above it. It does have this major order area, so that’s going to be interesting to watch.

As well as knowing that the Australian dollar has their monetary policy report as well. And so with this one being in the near term neutral because of the bounce up, then it bounced down. Because the fact that it’s moving averages are going sideways.

But right now, in the more near term, more bearish. After getting this loss of its 20 kind of dropping here above both this, as far as the six four cent area, that minor dime area, and then bouncing back up to its 20 period moving average. And then getting rejected, rejected, coming back down.

And this 20 period moving average, continually pushing it back down to these long period moving averages where it should be able to find support. If it cannot find support here, then that’s where it breaks down. So we’ll watch that idea again.

We have these ideas so you can look for EJ as well. EJ is doing something that it hasn’t done in a long time, a very long time, in over a decade.

We talked about that on the coaching call as well as with the AJ idea.

We have this one here losing its 20 period moving average. So it will need to regain this 20 pair moving average. Again, looking for support here from its 50 period moving average.

But also currently finding support here above this minor area here as well. So continue to keep this one on watch to see if this one does continue to drop as it has been doing for the first part of the week. Or if it does decide to break that downward trend that it’s in and bounce off of its 50.

But again, that 50 area is the area to watch to see what this trade decides to do in the near term. All.