Dollar had a hard run the last three weeks with heavy bearish candles on the weekly. Price action has been messy, not easy to just get in and ride. My bias is still bearish, but I’m also looking at the bigger picture.
On the monthly chart, key distribution sits under 94.095 and we haven’t reached it yet. Over the last two months price has been filling the bullish order block around 95.971 order block on the dollar index. If the market maker decides to move, it could go fast once the data lines up, whether in the first or second week.
Right now we are sitting in a bearish volume channel lower end. Selling late is not smart because most of the move has already passed. That doesn’t mean there are no trades, but it does mean higher frequency and tighter risk until the next clear setup.
From the economic side the jobs data is weak with only 73K added last month, which keeps pressure on the Fed to cut. The Fed is also seen as politicized, which hurts credibility and weighs on the dollar. Markets are already pricing a September cut and analysts are leaning bearish. At the same time inflation is still sticky near 2.9 percent while jobs are slowing, which leaves the Fed boxed in. Headline PCE is flat, not strong enough to flip hawkish and not weak enough to go fully dovish. That mix can trap the dollar between 97 and 100 until one side breaks.
Best move is to keep watching the data closely before trading dollar markets. Bias stays bearish, but chop risk is high.
On the monthly chart, key distribution sits under 94.095 and we haven’t reached it yet. Over the last two months price has been filling the bullish order block around 95.971 order block on the dollar index. If the market maker decides to move, it could go fast once the data lines up, whether in the first or second week.
Right now we are sitting in a bearish volume channel lower end. Selling late is not smart because most of the move has already passed. That doesn’t mean there are no trades, but it does mean higher frequency and tighter risk until the next clear setup.
From the economic side the jobs data is weak with only 73K added last month, which keeps pressure on the Fed to cut. The Fed is also seen as politicized, which hurts credibility and weighs on the dollar. Markets are already pricing a September cut and analysts are leaning bearish. At the same time inflation is still sticky near 2.9 percent while jobs are slowing, which leaves the Fed boxed in. Headline PCE is flat, not strong enough to flip hawkish and not weak enough to go fully dovish. That mix can trap the dollar between 97 and 100 until one side breaks.
Best move is to keep watching the data closely before trading dollar markets. Bias stays bearish, but chop risk is high.
Danel Fadejev
Founder, CORE 5 Tradecraft
Measure. Define. Qualify. Authorize. Execute. Protect. Record. Audit. Scale. Repeat.
— CORE5DAN
Institutional Logic. Modern Technology. Real Freedom.
Founder, CORE 5 Tradecraft
Measure. Define. Qualify. Authorize. Execute. Protect. Record. Audit. Scale. Repeat.
— CORE5DAN
Institutional Logic. Modern Technology. Real Freedom.
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Danel Fadejev
Founder, CORE 5 Tradecraft
Measure. Define. Qualify. Authorize. Execute. Protect. Record. Audit. Scale. Repeat.
— CORE5DAN
Institutional Logic. Modern Technology. Real Freedom.
Founder, CORE 5 Tradecraft
Measure. Define. Qualify. Authorize. Execute. Protect. Record. Audit. Scale. Repeat.
— CORE5DAN
Institutional Logic. Modern Technology. Real Freedom.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.