Dollar Declines and threatens to retest lows or perhaps make new ones….something like that I had written in my last week’s post along with a monthly chart so as to enable you to look at broader supports and resistances!
Posted below is the daily chart of the Dollar Index and as you can see we did break that channel of ours, and now hanging precariously by the neck so to speak. All things bearish have already been spoken about the Dollar; let us see if we see anything bullish, a ray of hope (Strictly in technical parlance)!
Ah! For starters from the above chart we can see that the price has drifted far too below the nearest MA (the 20) so technically a sideways consolidation (to bring down the MA) or a pullback towards the nearest MA is not ruled out (reversion to the mean)! Secondly a nice bullish divergence is in the making but yet to be confirmed by the price! A retest of 77.50/ .80 would decide the future…well at least it would get us back near the 20 periods MA for starters!
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