FOREX WATCHLIST WEEK 49, 2023
On the weekly timeframe, we have bearish trend with minor corrections. Presently, we are in the tail end of a bullish correction. On the 4 hour charts we have registered a change of character signaling a reversal of trend is in the horizon.
For the better part of 2023, we have maintained a bullish bias. However, on the weekly timeframe we have confirmed reversal to the downside to correct inefficiencies at 1.00 price handle. The bullish correction has come to an end. On the 4 hour chart we have a change of character confirming the reversal. Once we have a second confirmation, we can trade this pair targeting the weekly low of 1.047 price handle.
On the monthly timeframe, we have a strong bullish momentum. The bullish momentum has created inefficiencies that the market seeks to correct. On the daily charts, we have a new low and lower high formed indicating signs of a bearish correction. On the 4 hour chart we have a change of character confirming a bearish set up. Once we have a minor bullish correction, we will seek sell limit orders.
The Japanese Yen has had a lackluster performance in 2023. Talk of Bank of Japan intervention has not slowed the bearish trend. There are signs of reversal of the Yen across. On the 4 hour chart, we have an internal and external break of structure confirming a bearish bias.
US100 and US Dollar have a negative correlation, when one rises, the other falls. In the last one month, the US Dollar index, DXY has been in bearish correction while the US 100 has been in bullish correction. The correction seems to have come to an end with the US100 registering both internal and external breaks. We anticipate a minor correction to activate our sell set ups targeting the inefficiency on the downside.