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Dollar Strong Next Few Days

Published 10/15/2015, 10:22 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/JPY
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USD/CAD
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The EUR/USD tested the September 18 lower high yesterday. The breakout failed and reversed down strongly overnight. It began a strong 2nd leg down on the 5-minute chart a few minutes ago. Because the 60-minute chart has been in a broad bull channel for the past 3 weeks, and the reversal began after the 3rd push up from the pullback after the October 2 breakout (a spike and channel bull trend), and the overnight reversal was strong, the odds are that there will be at least 2 legs and a measured move down over the next few days. Bears will sell for any reason, and they will especially be eager to sell the 1st pullback in the bear swing, since the odds of a 2nd leg down at the moment are about 60%.

The 60-minute chart of the USD/CAD was in a tight bear channel for about a week, and it is now in a broad bear channel. Bulls will be increasingly willing to buy because they know that the odds are that the bear channel will transition into a trading range over the next few days.

The 60-minute chart of the USD/JPY broke below the trading range of the past 2 months. However, it had consecutive big sell climaxes, with the 2nd one ending about an hour ago. The odds are that it will go sideways to up for at least a day or two.

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