Today has been a pretty slow Friday. Although I have been short dollar this whole week, something interesting happened today that might end the dollar drop soon. The dollar had a nice pop to the upside, dipped down, but did not go lower than it’s previous low. It’s resisting to stay further down, and additionally, other dollar pairs are in a pressure point and are facing some resistance. One pair that has been rallying up nicely against the dollar is the NZD/USD pair. This pair has been going up over 400 pips since last week but has hit a nice resistance. It will be a triple touch and I caught it nicely at the top for a great R/R.
The dollar’s slow down in it’s dip is convincing me that it’s ready for a correction. I traded some short dollar today which got me some quick profits. However, since the dollar did not drop and test it’s previous bottom, I think we can see a pretty good bounce. EUR/USD has hit a diagonal resistance, GBP/USD is running out of steam, and the NZD/USD mentioned above hit a promising technical level. I hate holding onto trades for the weekend however, I think it’s too early to close out my long dollar trades. At least for once I’m not holding onto negative positions hoping they will turn positive. I’m holding onto positive trades hoping they will turn more positive.
Check this triple touch by the NZD/USD, a bounce is most likely to occur.