Day 485: What goes up must come down?

Profit: $6.31 Total: $871.77

I didn’t trade yesterday due to personal reasons but the dollar is in a very interesting position right now. The dollar is still very bullish and although EUR/USD is continuing to make lower lows, it seems like there are fewer dollar bulls. Throw in profit taking into the mix, we can have a short pullback in the dollar which will possibly attract more dollar bulls. For now, I’m still bullish on the dollar but aware of a potential dip.

Here’s a nice trade I took in the NZD/USD using clone boxes. Basically a clone box measures the leg of one movement and predicts the 2nd leg using a 1:1 ratio.

You can see the purple wedge break out followed by a 1:1 move down with a nice bounce at the bottom.

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