Daily: steepest trendline broken. Kijun and first horizontal key support retested and refused yesterday. Tenkan and Kijun getting close to each other, so next Kijun break attempt may be succesful. That would be a classic take profit signal on shorts for pure Ichimoku followers. MACD and Slow Stoch up together, DMI lines quickly closing in, ADX started to drop.
All together it looks like bearish momentum is quickly decrasing. Of course it can try to dip few more times, as lately enterring bears give up last and they are always too desperate to hold on and prove their right in the already crowded mkt. But chances are higher for either a sideaway consolidation or rather some larger correction up to 1,2950-1,3000.
4 Hrs: Broke the trendline, 100 WMA, and briefly stepped above the Kumo. We still need one more push, then we'll have a Chikou Span cross above the Kumo as a confirmation. Pice is now back into the Kumo, and retested previous bearish trendline and 100 WMA. Tenkan is Above Kijun, both of them are in the Kumo, this is medium bullish. Future Kumo crossed positive (Senkou Span cross). DMI also bullish, only Slow Stoch is under bearish pressure.
So what to do? I am already short DXY anyway, so the safest way to take a long with best risk/reward is clearly to set up a Stop Buy at 1,2720, or if Price trades lower but still in the Kumo and above Kijun Sen, then Stop Buy at mkt price when Slow Stoch turns bullish. Volatility increased so stop loss should be placed the lowest at 1,2590, thus be careful with position sizing too!
All together it looks like bearish momentum is quickly decrasing. Of course it can try to dip few more times, as lately enterring bears give up last and they are always too desperate to hold on and prove their right in the already crowded mkt. But chances are higher for either a sideaway consolidation or rather some larger correction up to 1,2950-1,3000.
4 Hrs: Broke the trendline, 100 WMA, and briefly stepped above the Kumo. We still need one more push, then we'll have a Chikou Span cross above the Kumo as a confirmation. Pice is now back into the Kumo, and retested previous bearish trendline and 100 WMA. Tenkan is Above Kijun, both of them are in the Kumo, this is medium bullish. Future Kumo crossed positive (Senkou Span cross). DMI also bullish, only Slow Stoch is under bearish pressure.
So what to do? I am already short DXY anyway, so the safest way to take a long with best risk/reward is clearly to set up a Stop Buy at 1,2720, or if Price trades lower but still in the Kumo and above Kijun Sen, then Stop Buy at mkt price when Slow Stoch turns bullish. Volatility increased so stop loss should be placed the lowest at 1,2590, thus be careful with position sizing too!
