05/12/2023
I have recently shared four images outlining my approach to engaging the market this week. While I acknowledge that the volume of information might appear excessive to some, I find value in delving into these details over the weekend. This thorough analysis helps me form a comprehensive understanding of potential price movements, preventing confusion when the markets become active.
The initial image depicts bond yields, specifically the 5-year, 10-year, and 30-year bonds, all indicating a bearish trend. I anticipate a continued downward trajectory this week, as there seems to be further potential for sell-side movement.
The subsequent images display COT data for the DXY and Pound. Upon closer examination, the Pound's COT appears notably bullish, while the Dollar's suggests a bearish sentiment. Consequently, I anticipate more bearish movements or sell-side deliveries for the DXY. Understanding the impact of yield drops and DXY fluctuations on ###USD, this analysis informs my strategy.
The final image features the DXY chart, reinforcing my bearish stance. I've identified specific areas or premium arrays where price action might predominantly create weekly highs. Notably, I've marked a weekly FVG around last week's Friday highs, coupled with a daily inverted FVG within that range. These levels exhibit robust resistance potential to influence a downward price shift. However, should there be persistent trading beyond these levels, I'm observing another weekly FVG slightly above these two premium arrays. This encapsulates my current market outlook.
