We have been looking at the USD for a while and especially at our 07/08/2014 post commenting on how it is on correction mode and we should keep an eye for new buying opportunities. Looks like that this correction is over and USD is up again.
After performing a quick scan of the markets using the Trend/Wave/Extreme under the 4 Hour timeframe we can see that the USD continues to be strong trending against all its counter-currencies. Also in most of the case the wave is also pointing USD strength and also overbought conditions. A sign of USD dominance which also means it may be to late to jump to a trade. Nevertheless there is still USDCAD and GBPUSD which have not yet reached USD overbought conditions that could be pottential trades.
GBPUSD (H4) Wait Sell
The Trend/Wave/Extreme mini view indicator is showing us
- Trend bar is Down Red filled pointing Down Trend
- Wave bar is showing Up meaning the pair is correcting to the upside
- A solid down trend line chart pattern
*Note: The pair is still in correction mode so wait for two consecutive candles prior to selling as it highly likely to move higher prior to dropping.
Read about the Trend/Wave/Extreme system here