Head and shoulders pattern has formed nicely, price has just touched the neckline for a successful failed retest. This was due to the EURO falling to 1.1920 area for support, i believe both pound and euro are going to finish strong this year. Investment banks such as Goldman Sachs have even predicted a weak year for the dollar. I see the DXY falling to create new lows at around 90.80 area before falling even more, this will also reflect in EUR/USD and GBP/USD as they will continue to make new highs. 50 EMA and 100, 200 SMA'S both clearly above price now. Stoploss at around 92.83 while target at 90.82, looking to hold this for a couple months will give updates on new targets.
Kommentera:
USD is just crumbling and expect 1.618 fib extension to be hit soon , GBP/USD and EUR/USD are gaining while USD/JPY looks to fall more. Complete USD collapse at the moment, still in this trade until we reach the monthly trendline which has price of around 87.5