Has EURUSD bottomed? Has Dollar topped?

Σύντομη Κυματική ανάλυση ΓΔ
December 18, 2018
Natural Gas week ahead.
December 22, 2018

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?

 

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 EURUSD its major component, I will be expecting EURUSD to move higher than 1.2550. Bold call…..am I crazy? time will tell…let us see some charts.

Dollar index

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.

EURUSD

On the other side, EURUSD is showing bullish divergence 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.

 

Have a great weekend everyone!!!

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.