USD oversold after Federal Reserves Minutes (10.07.2013)

USD 10.7.2013

The US Dollar has been on a roll lately making gains against nearly every currency.

Today we have observed a general decline in the value of the US Dollar.
Using the Trend/Wave/Extreme system indicator , as shown in the screenshot, we can instantly analyse how the USD is behaving now against the major currencies, following the Federal Reserves Minutes.

 

It can be seen that the USD has reached Oversold levels against currencies such as the EUR,GBP,JPY,CHF while it retains its uptrend against them.

usd min 10.7.2013What does this mean?

It may be a good opportunity to buy USD now at a lower price since is oversold.

Looking however at the signal from our new slick Trend/Wave/Extreme Indicator it is not yet fully confirmed that we should buy the USD.

We have not seen two consecutive up candles (for buying USDCHF/USDJPY) or down candles ( for selling EURUSD/GBPUSD).

It is important to wait for this confirmation as there is always the risk of the reversal and the market may start selling USD.

REMEMBER YOU ARE NOT A GABLER,YOU ARE A TRADER. BE PATIENT AND SET STOP LOSS.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.