Support and Resistance Archive
If this 7-year resistance in SiMSCI is not broken, it could be here to stay. Investors could exit quickly on any bearish sign. They could decide quickly that it is more worthwhile to trade a well established range than to challenge a significant resistance with a buy-and-hold strategy.
A look at Dollar Index DXY, EURUSD, AUDUSD, NZDUSD, GBPUSD, WTI and XAUUSD. A common theme - a turning point could be showing up soon seeing how these pairs might be at support.
SiMSCI follows a 30-month cycle between late 2006 to present according to this chart. If true, local stock market is reaching a top soon followed by a bottom by end of 2018.
A EURUSD illustration of the choices forex traders got to make prior to a highly anticipated high impact news - which one will you pick? Do you have a consistent approach? Which choice delivers better performance over time?
There is a a big 300-pip space below the current EURUSD price pattern until the next most-looked-for potential support. This might or might not happen but could be really rewarding for EURUSD shorts if it does.
AUD and NZD pairs show recurring, high probability levels on weekly charts, and have a lot of significance because of duration and number of hits.
DXY bulls are happy as long as the index stays above this prominent 2-year support. Bears however have their signal. It is now a matter of time while the index does it's usual zig zag before the inevitable happens. The signal for DXY to go lower in 2018 is already in place.