Greetings to traders! I hope that you all are fine today. Today is Wednesday, and it is the middle of the week. This week, we have passed a lot of events, and today we have some significant events for the USD currency. The US Dollar Index reached the multi-week lower price at 93.25 and pulled back towards the bullish region. The price of the US Dollar Index formed a strong support line at 93.25, and the initial support line rejected the price of the US Dollar Index. From the beginning of this week, the price of the US Dollar Index has been hovering towards the bullish region, and events from the US Dollar Index pulled the price of the US Dollar Index to reach above the multi-week higher price at 94.27 price mark. As of writing, the price of the US Dollar Index is trading around the 94.02 price mark.
Closed Trades Update:
The bonus for week-43 & 44 has been credited to our InstaForex Live Trading account, and I executed some orders on the precious metal gold. I managed a handsome amount of profit last week, but silver orders made a few losses. However, I recovered all previous losses, but I made a massive mistake of executing some more crude oil orders and counting a significant loss.
The Economic Calendar:
In the economic calendar, there is a lot of news for major currencies, and the most concerning event for today is “ADP Non-Farm Employment Change.” During the Aussie session today, there were some downbeat events for the NZD currency.
All USD events are listed below:
- ADP Non-Farm Employment Change.
- Final Services PMI.
- ISM Services PMI.
- Factory Orders m/m.
- Crude Oil Inventories.
- FOMC Statement.
- Federal Funds Rate.
- FOMC Press Conference.
The Overview of the US Dollar Index:
The price of the US Dollar Index was moving towards the bullish region at the end of last week. But at the beginning of the week, the price reached the multi-week higher price at 94.28. So, the US Dollar Index price formed a strong resistance line at the 94.28 price mark, and after rejecting the major resistance line of 94.28, the price reached the weekly lower price at the 93.79 price mark.
In the 4-hour time frame, the price of the US Dollar Index is entirely on the bearish trend, but the MACD technical indicator formed some strong bullish divergences in the 4-hour chart. The 100-Day and 50-Day Simple Moving Average indicates the price of the US Dollar Index towards the bearish region. So, the US Dollar Index price was rejected by the major resistance line, and overall, I am looking forward to a potential buying opportunity on the US Dollar Index. The price should be trading below the 94.50 price mark soon.
A sell-trade opportunity on crude oil:
The West Texas Intermediate Crude Oil has been hovering towards the bearish region after making the weekly higher price at the $84.87 price mark. There is a strong resistance level at $85.40, and the price of crude oil did not cross the significant resistance line of $85.40. After making the resistance line, the price has pushed back towards the bearish region, and as of writing, the price of crude oil is trading around the $81.00 price mark.
The Entry Point:
In the 4-hour time frame, the price of crude oil is entirely on the bearish trend, and the MACD technical indicator formed some strong bearish divergences in the 4-hour chart. However, the 100-Day and 50-Day Simple Moving Average indicates the price of crude oil towards the bullish region. The price of crude oil formed a strong resistance level at $85.40 and the initial resistance line at $84.87. So, the sell entry started when the price was rejected from the major resistance line of $85.40.
The Exit Point:
From the technical perspective, the price of crude oil is entirely on the bearish trend, and the 100-Day Simple Moving Average indicates the price of crude oil around the $83.00 price mark. In the daily time, the price of crude oil is entirely on the bearish trend, but the MACD technical indicator did not form the bearish divergences yet. We can see that there are a lot of bullish divergences in the daily chart but very soon, the price may form some strong bearish divergences. So, a break of the $84.87 resistance line will create the exit point of the sell-trade opportunity on crude oil. So, overall I am looking forward to a potential selling opportunity on crude oil, and the price may reach below the psychological mark of $80.00.