Since November last year, the US dollar has been rallying within a wedge formation and is still pretty much within this wedge. As long as the price remains within this wedge, we choose to remain on the sidelines, our expectations is that the price should break – out of this wedge, thus, we’ll remain on the sidelines and only buy or sell depending on the direction of the breakout. If the lower supportive trend line is broken, then we expect a possible bearish momentum towards 110.85 and may break towards 108.00. This pair should be traded alongside CADJPY, AUDJPY, NZDJPY and CHFJPY. These pairs have a strong positive correlation and will move in the same direction today.
On the sidelines