So with all the China hoopla around their recent announcement to devalue the Yuan, I was actually stalking a trade in the US Dollar Index (DXY). An Extremehurst compression signal just broke out right on time.
In the first chart below, you can see a monthly scale top extension has kept me on my toes looking for the right entry point to go short DXY.
US Dollar Index – Monthly Chart With Extremehurst Top Signals
And on the daily scale I feel like the compression breakout is a good signal to test the waters on the short side.
I used this opportunity to get short the USDCAD (forex). As with any trade, I’ll keep my risk on a leash. But this setup came together at the right time, technically speaking. Thanks for reading.
Twitter: @interestratearb
Author is short USDCAD (forex) at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.