Through my daily analysis of the Dollar index that can be found here, we expected a Dollar index bounce (strengthening of the Dollar) the last couple weeks. The Dollar index bounced strongly from 91 to 92.65 but recently got rejected and it now shows signs that the bounce is over.
My view is that we are heading now below 90. However we have to point out that the weekly is very oversold and we should expect over the coming weeks to see a bigger bounce in the index.
Price held inside the bullish channel and reversed right at the 1.18-1.1850 support. Key resistance remains at 1.20. Break it and we can see 1.22-1.23. Also watch out the RSI as it can point out inability to break resistance and bearish divergence.
This is what I posted on twitter and expecting to see in GBPUSD.
— Alexandros Yfantis (@alexanderYf) September 12, 2017
It did exactly that. Bulls however need to be cautious because of this trend line.
Expecting a rejection and bearish reversal NOW….this is the only pair (guess why!? hint BOJ) why Dollar is still strong here….not for long.
Sideways action, below the cloud. I’m bearish expecting a cloud rejection strong enough to push price below the black trend line and start the next leg down to new lows.
Has broken out of the bearish channel, but nothing really to like here…..Below the Kumo….overlapping price structure….the only positive I see is that the weekly Kumo (cloud) was respected and price bounced.
Bullish…not much to talk about here….huge breakout, back test….and is going above 0.81 in my humble opinion…much higher…
Thank you for taking the time to catch up on my thinking…..wishing you all great weekend….take care