The SMT divergence confirmed the rally on EUR and the decline on USD.
We want to see a gap lower opening on NASDAQ. on E-Mini S&P, on the Dow futures. We would like to see, by contrast, a gap opening higher on the dollar, maybe come down, try to fill it, then rush to go higher.
If anything happens this week that is seen as a rally in risk, meaning like euro-dollar, pound-dollar, NASDAQ, or any of the indices or stocks, if they go higher, they're going higher to be faded. It would be short-lived and then be met with more shorting.
When the Dollar is hold in consolidation the pairs not related to the dollar as EURGBP, AUDNZL will be allowed to move freely and have exaggerated moves. Chose the pairs that don’t have USD in them. Then look for the interest rates differentials between them.