USD Testing Major Support, Waiting on Key Events on Direction
The USD index has been testing major support for almost a day now, as markets wait on three main event risk. These events include ECB rate decision, Trump EU trade talks, and the much anticipated Q2 US GDP.
Scenario One (Rebound): Price rebounds from major support
Scenario Two (Bullish Breakout): Price sharply falls below support, look for price to consolidate below 94.
Comment: Although these situations give rise to strong profit opportunity, volatility could rise. This is significant as volatility makes it harder to attribute the changes in price to psychological levels or trend structure.
Scenario One (Rebound): Price rebounds from major support
Scenario Two (Bullish Breakout): Price sharply falls below support, look for price to consolidate below 94.
Comment: Although these situations give rise to strong profit opportunity, volatility could rise. This is significant as volatility makes it harder to attribute the changes in price to psychological levels or trend structure.