Finally, the Dollar Index made a new Yearly High. Typically, after taking out the Yearly LHBL last year, it would have been much more common to see a correction of about a year before continuing higher, but this turned out not to be the current case.
This is also a break up of a Semiannual flag, a possible long term AB=CD pattern, with projection at the level of 113.7.
We’ve reached the 101.5 area target for the bullish Daily pinbar on sloping 8 EMA of the post elections day, NOV 9th.
The current midterm picture remains very bullish, the Weekly High of the previous Weekly bullish pinbar on sloping 8 EMA has been taken out last week, a signal to reach the 102.2 level area, slightly above the 102 target of the 2016 2nd Quarter bullish pinbar setup.
Currently, the market is relatively very close to all targets, so there isn’t any point joining the move on the 8H and above timeframes, except for a good 1:1 bullish signal. Any pullback on the Daily timeframe followed by sign of strengths can turn into a good opportunity to reach the above targets fully.
Dollar Index, Daily, Weekly and Quarterly timeframes with current signal targets (at the courtesy of prorealtime.com)
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