Making the case that the market has been in distribution of the USD since early in 2015 when a buying climax (BC) occurred. Since then the USD has been in a trading range with Signs of Weakness (SOW). Most of 2016 low volume adsorption occurred with an upthrust using the presidential elections as springboard. In 2017 we have seen signs of weakness with increased volumes on the selloffs and decreased volumes on the rallies. The first ice was broken with a jump of the confluence of the 200dma and yearly pivot point. A backup to this support level can be expected with a fall through the ice again. So I am looking for a short term rally and then a strong move through the ice.
Comment:
The fall through the ice has occurred and we find a backup to the ice occurring with a lower time frame accumulation pattern.