Very interesting dynamics at play in the dollar. Keep an eye on the price action here. Price is currently at point A where there is a confluence of resistance levels.
Price rebounded from the blue channel a few weeks ago but there is no follow through yet. If you have a bearish bias the next drop could go as low as point B where we have a confluence of support levels. The question then is if price drops from here or if the dollar manages to first rally up to the upper side of the red channel, to subsequently drop from there.
In any case, it looks like we might be witnessing one more dollar rally followed by price action to the downside.
Hard to say if these moves will be explosive in nature but we should keep in mind that dollar volatility is currently at its lowest level for a what is now a very long time.
Worth observing how the indices behave while dollar price action is unfolding the coming days/weeks. Nasdaq & SPX analysis linked to this chart.
Price rebounded from the blue channel a few weeks ago but there is no follow through yet. If you have a bearish bias the next drop could go as low as point B where we have a confluence of support levels. The question then is if price drops from here or if the dollar manages to first rally up to the upper side of the red channel, to subsequently drop from there.
In any case, it looks like we might be witnessing one more dollar rally followed by price action to the downside.
Hard to say if these moves will be explosive in nature but we should keep in mind that dollar volatility is currently at its lowest level for a what is now a very long time.
Worth observing how the indices behave while dollar price action is unfolding the coming days/weeks. Nasdaq & SPX analysis linked to this chart.
