Last week dollar gaining ground against everything, German unsuccessful bond auction push the Europe in disarray especially when the yield of Italy, Spain bond hovering around 7% level. I get the impression this week dollar will crush all of its counterpart again and making new high in weekly chart. Here is the chart for weekly dollar index.

For this week I have decided to ignore buying stock and looking only for short term movement trading forex or gold. Base on my prediction, I think dollar index will push to the blue area, and later we will wait for further clue for next direction. For forex, I would only concentrate on EUR/USD because I don’t like spreading my focus in wide choice of securities. Better focus on smaller choice and make profit out of it (in this case I scalp and day trade only).

EUR/USD weekly chart

EUR/USD tumbling and not showing any sign of strength, everyone seems allergic to this pair, from the chart, I see 1.3100 will be tested in near future, and the test might extend to 1.2880 area. That level interestingly have support from 61.8% fibonacci retracement level. Even though support is there, i would not place any long for swing until PA (Price action) show sign that buyer coming in. So what I will do for this pair is Shorting every rally and trade it short term – medium term until buyer comes in.

GOLD weekly chart

Gold is my favorite, buying on every retracement to the trend line in weekly chart was proven 100% winning method. For now as the price failed to make new high, will the method work again? I think this i don’t know, but following the rules, “As long as trend line not violated, the trend still healthy”, I will place long when it touched trend line and at least PA show strong buyer move into gold in hourly chart, 4 hour chart, or daily chart.

With everything that I write, this week I still expect dollar to trump over its counterpart, I’ll long dollar and sell everything.