Is it time to be bullish the dollar. One thing is for sure….The dollar is now at a HUGE support level that could decide longer-term trend.
USDX
The 98.80-99 level is very important support. A strong upward reversal at least towards 100.80 could start from current levels.
As I pointed out a few days back, as long as we trade above 1.0550 the move towards 1.09-1.10 is the most probable one.
Is it time now to sell EUR/USD? Maybe…but the risk reward favors bearish positions at least for the short-term.
Price has broken the downward sloping trend line. I could see the price back test the broken trend line and then bounce back up towards the cloud resistance near 112-113.
5 waves up, bearish divergence at the last highs, a pull back towards 1.33 is expected before more downside.
Supported at 1.2770-1.2750. As long as it trades above it, we could see 1.30.
Resistance at 0.7050 did not break despite bouncing as expected. Bulls need to show more strength signs for the pair to move towards 0.71 and higher. 0.69 remains key support
Bounce off support as expected but with metals getting hit today, more downside should be expected once we break below 0.7480. 0.7610 is important short-term resistance. Bulls need to break it otherwise the chances are in favor of the bearish camp.
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