TFx_Forex Update

Action Insight Daily Report 9-23-22
Dollar and Yen Staying Strong on Risk-Off Sentiment
Dollar, Yen and Swiss Franc are currently trading as the strongest ones for the week, as supported by risk-off sentiment. Yen overpowers the other with help from intervention by Japan. Dollar is supported by hawkish Fed while Swiss Franc clearly lagged behind. Nevertheless, the Franc is still up against Euro and Sterling, which are among the worst performers together with New Zealand Dollar.
Technically, as long as some levels hold, there is prospect for Dollar to extend recent rally before weekly close. the levels include 0.9943 minor resistance in EUR/USD, 0.6698 minor resistance in AUD/USD, 0.9694 minor support in USD/CHF, and 1.3343 minor support in USD/CAD. But that would depend very much on how risk market flares.
In Asia at the time of writing, Hong Kong HSI is down -0.85%. China Shanghai SSE is down -1.08%. Singapore Strait Times is down -0.83%. Japan is on holiday. Overnight, DOW dropped -0.35%. S&P 500 dropped -0.84%. NASDAQ dropped -1.37%. 10-year yield rose 0.198 to 3.708.

Type of Perfect Bearish Engulfing

The second candle in the pattern is the reversal signal.

This candle is comprised of a long red candle creating fresh downward price momentum.

This bearish candle should open above the close of the previous candle and close well below the low of the previous candle.

This strong downward movement reflects sellers overtaking buying strength and often precedes a continued fall in price.

The further this secondary/ bearish candle declines, the stronger the signal becomes.