Who is watching the weekly chart of the dollar could not miss the tag of the 200 SMA. The institutional buyers of the dollar were ready at this level and it reversed. Was this drop enough severe? If you take a look on the RSI, MACD, SLowStoch you must notice that this is the level where the previous bottoms formed (red dotted line). Now the question is how far this correction will go?
Though I'm long in the USD it's important to keep in mind that I think the longer term trend is bearish. I still think we are still in the megaphone pattern. So even if we get a very convincing bounce we have to be ready that it's going to drop hard again.
I'm 100% sure we will tag the 10EMA on the weekly chart. Most probably we will see a tag of the 20 EMA and maybe the 50 EMA.
This bounce will affect every vehicle in forex , the stock market, and precious metals. So needed to watch very closely.
During the next few weeks we might be printing a giant H&S pattern
Though I'm long in the USD it's important to keep in mind that I think the longer term trend is bearish. I still think we are still in the megaphone pattern. So even if we get a very convincing bounce we have to be ready that it's going to drop hard again.
I'm 100% sure we will tag the 10EMA on the weekly chart. Most probably we will see a tag of the 20 EMA and maybe the 50 EMA.
This bounce will affect every vehicle in forex , the stock market, and precious metals. So needed to watch very closely.
During the next few weeks we might be printing a giant H&S pattern
