The passing week has continued the weakness seen clearly on the Dollar Index. The week has with consolidation on the middle of the current range, continued with an Upthrust penetrating the open gap above, finally closed bearish extending the current range down.
Taking out the Weekly Low is a bearish signal to reach 97.5, a deep test of the Spring made at last November 9th, right as a reaction to the last US elections.
Looking at the mid range, the market continues with the bearish setup towards 96.2. This setup got rejected to the upside 5 weeks ago, but the renewal of the signs of weakness surely after making a new Low have brought this bearish setup back into play.
On the other hand, respecting the Weekly Low while taking out its High, is a bullish setup to close the open gap above and reach again the down trendline at 100, not rejecting the big bearish setup mentioned above, but surly a shortening of its thrust down.
Dollar Index: Daily, Weekly and Monthly charts (at the courtesy of prorealtime.com)
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