Wednesday was a bit tense for the USD. During the first part of the day, we experienced a significant weakness on the part of the Greenback, and in the second half of the day we got a proper rise in the value of the American currency. Thanks to this, DXY is giving us a sweet buy signal. The price bounced from the long-term upwards trend line and denied the H&S pattern. What is more, we are very close to breaking the upper line of the wedge. Sentiment is positive.
A similar setup can be seen on USDCHF, where the price created the head and shoulders pattern. The neckline was broken yesterday, but now we all know that it was a false breakout. That should result in a further rise. When trading USD today, do not forget about the FOMC later this evening.
One of the most impressive upswings yesterday could be seen in the US session. In today’s video we have the SP500, which managed to break the neckline of the iH&S formation. What is more, we additionally came back above the upwards trend line. The short-term momentum is extremely bullish, but the same happened here at the beginning of the year, so a further mid-term slide is still on the table.
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