A Choppy move to the upper Weekly range, and back down to test the Lows ended as an inside Weekly bar, with a Daily timeframe Triangle pattern. The overall behavior is still more bullish than bearish.

It has been the second week to close above the Weekly 8 EMA, supported on the 20 SMA from below, and there is a clear bullish follow through model – if the market takes out the Weekly High. Taking out that High at 101.75 is a bullish signal to reach the 103 area. This can also be as part of an AB=CD move (see the chart).

The higher timeframes support the bullish bias. The Monthly is currently being supported on the 8 EMA, and should be watched for closing above the important down trendline since March 2015, and the Quarterly and Semiannual timeframes are testing this line from above, already after an important HH.

Pay attention to the strong resistance at 102-102.25. If the price gets there, most likely there might be a strong reaction there, and having new signs of strength later can be a good opportunity to reach the target at 103.


Dollar Index: Daily, Weekly and Monthly charts (at the courtesy of prorealtime.com)



Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.