DXY - Consolidation, not reversal.
Here we can see the DXY daily chart.
As you can see we have a strong support area marked by the blue box, price last week came down to this point which is also confluent with the daily trend line which you can see on the chart.
You can see by the daily candle marked A we have a hammer candle, which often signals a bullish reversal of price.
If you study the same area on EURUSD, we have a similar situation, price has moved up to the daily trend line confluent with the 61.8 fibonacci level.
Fundamentally the eurozone is still a mess regardless of data releases.
I expect to see the dollar print another HH before a possible reversal is seen.
Please comment with thoughts if you like.
As you can see we have a strong support area marked by the blue box, price last week came down to this point which is also confluent with the daily trend line which you can see on the chart.
You can see by the daily candle marked A we have a hammer candle, which often signals a bullish reversal of price.
If you study the same area on EURUSD, we have a similar situation, price has moved up to the daily trend line confluent with the 61.8 fibonacci level.
Fundamentally the eurozone is still a mess regardless of data releases.
I expect to see the dollar print another HH before a possible reversal is seen.
Please comment with thoughts if you like.
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