Is the USD Pullback Over?
During the first part of the day in the Tokyo and London sessions, the US Dollar made some reasonable gains against most major currency pairs. I was wondering yesterday whether the retrace which started last Thursday was over; a sign of that would be a break of last week´s low, which is a 14-15 year low.
Well, last week´s low at 1.0360s in EUR/USD was breached but the price didn´t stretch further below. It stalled about 10 pips lower in the 1.0350 region and it started to reverse in the NY trading session. It´s been retracing since then but now it seems like the retrace might be over.
The USD decline has stopped and in many major forex pairs, USD buyers are fighting back hard. AUD/USD, NZD/USD, and GBP/USD are near yesterday´s low which means that the retrace up is over and a continuation of the downtrend is underway. That´s great news for our NZD/USD signal which we opened yesterday evening and now is not far from reaching the TP target.
By the way, if you remember I told you guys yesterday not to trust any break or any trend now until the winter holiday season is over and all forex traders back to their trading stations. That happened in EUR/USD yesterday; a multi-year low was broken but it didn´t carry on. It reversed higher yesterday and it seems like it might reverse and head back down again right now. That´s why we will try to play this game with short term forex signals these remaining 7-8 trading days.
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