Week ahead Preview: Dollar down,Euro and Cable rallies,what's up?

The first week of 2022 is officially over and the market is up and rolling.Since our last post there has been significant price movements but nothing has changed on our last sentiment.So lets round them up.

1.Dollar

The green buck has been bullish through out 2021 but that seems to be halted .On december the key level holding price is at 97.00 and the significance of this is that its a weekly bearish Order block.Now this could be a shortterm pullback in price or could be the beginning of bearish movement.

The next key level is at 94.00 and what makes it significant is the level is a previous resistance now turned support.The first quater is going to give mixed signals to the retail market in terms of dollar but we at affinity trading group we already know what to anticipate.Our close remark on dollar is that market could potentially bearish as seen on image below

2.EURUSD

Where dollar goes ,fibre does the opposite and this was seen by bearish run in 2021.As we approached towards the end of 2021 fibre got halted too and ever since price has been trading in range.Having completed the first week fibre is showing potential of trading outside the range.Friday non farm payroll seems to be adding to the catalyst list.

The sentiments on fibre still stands and we could potentially see bullish run on january.See the images belows for guidance

3.GBPUSD

Cable on the hand does trade on the same side with fibre ,though on several occassion there are delays.When this happens it become a good idea but only if you are informed of the process.This discrepancy between cable ,fibre and dollar is termed as smart money divergence. This is a very unique price action technique and it was establish by michael huddleston.

At 1.3160 price seems to have found substantial amount of support,which has led to a bullish run since december 2021.The other significance of this zone as we had earlier on discusssed is the monthly bullish orderblock.With this advancement in price we could see a continue bullish run.For more insights about trading kindly do follow us on social https://discord.gg/8SKwjDWg

see images below and goodluck in your trading.