Where is the Dollar heading? The picture is getting murky on lower
timeframes but on the Monthly Timeframe it is clearer. Index has dropped
sharply from april_ 2017 right to the Kumo Cloud. In september we saw
a bounce to the Yearly S1, which held as resistance. Then another drop
to the Cloud, but without being able to penetrate it or close inside of it.
So another bounce is on going right now.
Generally, index is trading below S1, which is quite bearish and this may
be a congestion before another leg down, to test the lower band of the
Cloud. Still, the trend, looking at the Ichimoku picture, is clearly Bullish,
with Index trading above the Cloud, thus the move down could be
regarded as a retracement, for another leg up. This latter view is valid
as long as Index is supported by the Cloud which is the case at this point.
The next sign for bulls will be a close above the Yearly S1 and even better a
close above the previous months highs around 95.20.
For bears, a close below 93.07 will likely lead to a breakdown and a test of
previous low at 91.10 and if that is breached, preferrably on a closing basis
there is no real support until the 87-88 ish_area, with the lower Cloud,
Yearly S2 and the SMA200 in proximity of each other.
Since, index is in this nomansland between 93-95, a wait and see strategy
seems to be the best approach, from this highest timeframe.
timeframes but on the Monthly Timeframe it is clearer. Index has dropped
sharply from april_ 2017 right to the Kumo Cloud. In september we saw
a bounce to the Yearly S1, which held as resistance. Then another drop
to the Cloud, but without being able to penetrate it or close inside of it.
So another bounce is on going right now.
Generally, index is trading below S1, which is quite bearish and this may
be a congestion before another leg down, to test the lower band of the
Cloud. Still, the trend, looking at the Ichimoku picture, is clearly Bullish,
with Index trading above the Cloud, thus the move down could be
regarded as a retracement, for another leg up. This latter view is valid
as long as Index is supported by the Cloud which is the case at this point.
The next sign for bulls will be a close above the Yearly S1 and even better a
close above the previous months highs around 95.20.
For bears, a close below 93.07 will likely lead to a breakdown and a test of
previous low at 91.10 and if that is breached, preferrably on a closing basis
there is no real support until the 87-88 ish_area, with the lower Cloud,
Yearly S2 and the SMA200 in proximity of each other.
Since, index is in this nomansland between 93-95, a wait and see strategy
seems to be the best approach, from this highest timeframe.