DJI, USD have reversed, are downtrending. For my own action, I look for DJI resistance followed by forex pairs to short the USD.
Odds of further Fed hikes in 2019 dinimished to virtually zero based on CME Fedwatch Tool. DXY reinforces this with down trend price action.
I am banking on XAUUSD to follow a price pattern that USDSGD printed earlier this year. If the same happens, we have a long setup.
Straightforward EURUSD short would be easier to manage and more exciting. Should there be reversal, the wedge is an early indication.
XLE – DXY demonstates negative correlation i.e. that major episodes of XLE strengthening happens when DXY is falling and vice versa.