Overall the dollar is in a larger bull market since it bottomed in 2008 at 70 with a second test in 2011
Today on the weekly we are consolidating and getting ready for a leg up to continue the trend. There are several things going on;
1.We are in the apex of a wedge starting in 2002 for the upper line
2.We have put a head and shoulders pattern on the daily with the low in mar 2018 at 89 but we have not broken yet the neckline we have been in a sideways slightly upward direction in the "green channel"
3.We have a fib retracement from the last leg down and we have managed to break back above the 61.8
4. MACD is above zero line and moving up
5. RSI has far to go on a daily basis
6.Based on cycle time we still have until June in this cycle before any pull back (but cycles are not exact they are an estimation can be longer or shorter). the first target is 110 (C) 1.27 with an eventual move to retest the high at 120 (D) 1.68
As we have consolidated under the neckline of this H&S the move should be extremely strong when we break out and that is in the coming days/weeks.
Fundamentally. Many people are bearish on the dollar, the news is always talking about a weak dollar, but it's just false and senseless. The dollar is the only currency wanted and used by other foreign countries, no other countries debt or currency is being bought up by other countries for any real purpose i.e Yen/EUR etc. Anyway all of the other currencies are simply derivatives of the dollar. Interest rates are still far above in the US than other countries and their economies are weaker too.
So overall technically and fundamentally the dollar is going higher. much higher.
Today on the weekly we are consolidating and getting ready for a leg up to continue the trend. There are several things going on;
1.We are in the apex of a wedge starting in 2002 for the upper line
2.We have put a head and shoulders pattern on the daily with the low in mar 2018 at 89 but we have not broken yet the neckline we have been in a sideways slightly upward direction in the "green channel"
3.We have a fib retracement from the last leg down and we have managed to break back above the 61.8
4. MACD is above zero line and moving up
5. RSI has far to go on a daily basis
6.Based on cycle time we still have until June in this cycle before any pull back (but cycles are not exact they are an estimation can be longer or shorter). the first target is 110 (C) 1.27 with an eventual move to retest the high at 120 (D) 1.68
As we have consolidated under the neckline of this H&S the move should be extremely strong when we break out and that is in the coming days/weeks.
Fundamentally. Many people are bearish on the dollar, the news is always talking about a weak dollar, but it's just false and senseless. The dollar is the only currency wanted and used by other foreign countries, no other countries debt or currency is being bought up by other countries for any real purpose i.e Yen/EUR etc. Anyway all of the other currencies are simply derivatives of the dollar. Interest rates are still far above in the US than other countries and their economies are weaker too.
So overall technically and fundamentally the dollar is going higher. much higher.