The US Dollar has been falling since the start of 2017, and even for most of January in 2018. Many banks are calling for a continue weakening in the US Dollar for the rest of 2018, riding on the down trend established since last year.
However, our analysis tells us otherwise. While we currently still do not have a fundamental catalyst to tilt the Dollar to the upside, we are seeing the downside for Dollar to be limited. In fact, there is a fair chance we will see a deep retracement, if not a reversal in the Dollar soon.
We are seeing a 5-wave completion on the Dollar, with a diagonal forming on the 4-hour chart. What we need is simply a catalyst or fundamental tilt to align our technical outlook.
Keeping a close watch on this next week.
*This is not a trade call to enter a long position on DXY. Make sure you have a proper plan to trade and manage your risk.
However, our analysis tells us otherwise. While we currently still do not have a fundamental catalyst to tilt the Dollar to the upside, we are seeing the downside for Dollar to be limited. In fact, there is a fair chance we will see a deep retracement, if not a reversal in the Dollar soon.
We are seeing a 5-wave completion on the Dollar, with a diagonal forming on the 4-hour chart. What we need is simply a catalyst or fundamental tilt to align our technical outlook.
Keeping a close watch on this next week.
*This is not a trade call to enter a long position on DXY. Make sure you have a proper plan to trade and manage your risk.