USDOLLAR buy the dip opportunity may be developing on short-term chart – 09 May 2022
The daily timeframe (left chart) of FXCM's dollar CFD, USDOLLAR, shows the basket heikin ashi (HA) candles, a trend-following indicator. Last week Wednesday and Thursday's volatility presents as two red HA candles (black ellipse). Moreover, the basket is trading in the bullish zone between the upper blue and red bands. As such, this volatility is considered a dip in an uptrend.
The hourly (chart on the right) shows the USDOLLAR pullingback to the central pivot (P). This area overlaps with the 61.8% Fibonacci retracement of the last leg up, and price resistance turned support (blue arrows). Again, triple confluences are key levels, and dollar bulls may be targeting this area. Support will be apparent if the EMAs and stochastic cross bullishly, and the stochastic heads towards the 80+ areas. Moreover, if the EMAs develop angle and separation to the upside, the price will be using the momentum as a platform to move higher.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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