Trading analysis for January 2017

The DXY has been trading above the 100 since a few weeks before the FED interest rate hike in December. In the past days from Thursday, January 26, 2017, the DXY has corrected itself and found support at 100. The 100 support has been hit twice; once around December 2016 and a few days ago from January 26.  On Thursday, January 26, 2017 the DXY has bounce back from the 100 mark and the EURUSD hit a psychological resistance at 1.075, which is a good place to short the pair. Another reason 1.075 is a good place to short the EURUSD is: it hit the .50 Fibonacci mark from 1.00 to 1.15 which have shown support and resistance in the pass.  If EURUSD continues the depreciation pattern, there is a high probability EURUSD might hit 1.00. 1.00 would be a good place to close the trade. Other pairs like NZDUSD show the same resistance pattern. NZDUSD is trading around 0.72 at the moment. NZDUSD still has an uptrend pattern in the long run even thought for the short to medium term it shows a high probability of depreciation to 0.70 which it has shown support for the NZDUSD.

            The idea of commodity currencies appreciating as mention before and in other entries still stands and it has been withholding. This idea is another factor of going long on NZDUSD around the .70 mark.  This strategy is something to look at and it would consist of holding the trade for a long-term period. The long-term is consider to be one plus years and the strategy would take advantage of the higher over night interest rate the Reserve Bank of New Zeeland is giving.