Under the past weeks I've been posting a dollar reversal scenario, this week we are closer to that output. US Index broke a 6 month resistance downtrend on late September. Oscillators on 1W chart were showing enough strength to break resistance line and it happened. It rallied four straight weeks and found resistance at August Peak before correcting.
On this week an inverted Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 94.25. Signs of reversal are already piling up:
6 Month Resistance Broken late September
Rally to August Peak
Support found this week
Inverted Head & Shoulder pattern showed up this week
Hammer candle on Friday 13th
Economic Data support a stronger dollar: ISM, PMI, ADP NFP, Jobless Claims, Unemployment Rate, PPI
There are enough signs at this stage that support a US Dollar reversal. However time will tell if this is just a false breakout which leads to further deterioration, or a neckline breakout is confirmed. Fed Interest Rates are strongly driving dollar sentiment, along with NK tensions.
For more information visit www.investing.com/members/200755314
On this week an inverted Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 94.25. Signs of reversal are already piling up:
6 Month Resistance Broken late September
Rally to August Peak
Support found this week
Inverted Head & Shoulder pattern showed up this week
Hammer candle on Friday 13th
Economic Data support a stronger dollar: ISM, PMI, ADP NFP, Jobless Claims, Unemployment Rate, PPI
There are enough signs at this stage that support a US Dollar reversal. However time will tell if this is just a false breakout which leads to further deterioration, or a neckline breakout is confirmed. Fed Interest Rates are strongly driving dollar sentiment, along with NK tensions.
For more information visit www.investing.com/members/200755314
