Back in February 2018 my view for the Dollar was bullish as I showed in my tweets……The Dollar Index reversed and started a move towards 96-97 as expected…..now what?
USDX- Dollar Index
Now it is time to be bearish the Dollar once again….I believe wave 2 or B has been completed and we will see another strong leg lower for the index. And as EUR/USD its major component, I will be expecting EUR/USD to move higher than 1.2550. Bold call…..am I crazy? time will tell…let us see some charts.
Major bearish Divergence in the RSI. The up trend ended right at the 61.8% Fibonacci retracement where we usually see 2nd waves end. What Dollar bears need to see now is an impulsive decline.
On the other side, EUR/USD is showing bullish pergence signs and is now challenging a major trend line resistance. Price is about to break out and above a one month trading range. If bulls manage to recapture 1.15 and stay above it, then a big step in favor of the bullish EUR bearish Dollar scenario will be made. It is too early to tell if a major low is in or if we will see one more new lower low…..but looking at the bigger picture I believe that we are at a point where we should favor EUR bullish positions.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.