Preparing for a Dollar pull back

Το ρίσκο, τα κέρδη και οι ζημιές
May 9, 2018
Τούμπα πάλι οι αρκούδες
May 10, 2018

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.

 

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.

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.