Back in February I posted in twitter my view that the Dollar index should soon complete a decline around 88 and we should prepare for a big bounce.
— Alexandros Yfantis (@alexanderYf) February 16, 2018
So far so good, but I do not expect the bounce to be straight up. I believe the first leg up is near completion if not already complete.
Corrective waves usually consist of 3 waves and I believe we should now start the second corrective wave for a pull back before resuming the big bounce higher towards 95-96.
Zooming in the 4 hour chart price has broken out and below the short-term bullish channel and the bearish divergence signs in the RSI support my view for a pull back towards 91.66 which is my first short-term pull back target.
Concluding, I’m Dollar bearish at current levels expecting a reversal. Let’s see how things progress….thank you for taking the time to catch up on my thinking.