While the dollar has taken a beating recently, it appears to be due for a correction relatively soon. The index has rejected the 102.25 level and slid down to monthly lows. The completion of the 2618 motion illustrated above should have caused a cessation and reversal at the 100.15 level (point D) before a modest reversal, but it appears as though bearish momentum has pushed the index beyond this target. These new lows are running too hot and will need to return to a more stable structural level, indicated in this analysis as the zone surrounding point D. Last time price sharply reached these lows the subsequent reversal looked like the gray outline drawn above. For the purposes of this analysis, historical data will serve as a mock projection of future price action.
Kommentera:
Still motionless, but it should go back up soon. Hopefully we get some good news from the Trump camp regarding corporate tax cuts -- USD could use some optimism!