Just a quick update on the dollar index levels on the 8 hour chart for the MT5 USDX indicator. The dollar index is currently trying to break through the S4 I mentioned yesterday at 93.97 having failed to make any progress beyond 94.20. In other words index is trading in less than a 30 pip range. This tight range & these levels will, of necessity, impact what is going on in the faster time frames and determine a) the viability of any trade & b) the risk on that trade.
Range may increase once US opens and we also have end of month flows in and out of USD as fund managers rebalance portfolios, & of course we have the FOMC tomorrow. So all in all not easy, particularly if you are only using time charts. In this type of market condition it’s important to have a non time based chart such as a renko as it will make finding entries and exits that much easier.
Levels help to frame the price action & is something we are going to be covering in more detail in this week’s webinar. Hope you can come along. You can sign up at my site at https://www.annacoulling.com