The dollar has ended January with a relatively small bullish candle, showing signs of support and an end to a 2-month falling trend.
In the month of January, the dollar started the month with a slightly bearish tone, bringing the currency to a 33-month low.
It then started to reverse and rebounded strongly until it faced strong resistance at strong supply 90.8.
However, the reversal was short-lived and it quickly found support and gain traction upwards, making another attempt to break above the supply zone at 90.8.
That didn't work out as the price was resisted again but somehow manage to close somewhere just below the resistance.
In the end, January left us with an inverse head and shoulder in the daily timeframe, and a sign of reversal, or rather a pause, in the monthly timeframe.
Since that's the case, and since last week's Fed did not show any sign of easing monetary policies any further in spite of a dovish ECB in the same week, we think the dollar is ready for a bullish February.
We will look for buying opportunity if the price stays above 90 and until it reaches 91.8.
In the month of January, the dollar started the month with a slightly bearish tone, bringing the currency to a 33-month low.
It then started to reverse and rebounded strongly until it faced strong resistance at strong supply 90.8.
However, the reversal was short-lived and it quickly found support and gain traction upwards, making another attempt to break above the supply zone at 90.8.
That didn't work out as the price was resisted again but somehow manage to close somewhere just below the resistance.
In the end, January left us with an inverse head and shoulder in the daily timeframe, and a sign of reversal, or rather a pause, in the monthly timeframe.
Since that's the case, and since last week's Fed did not show any sign of easing monetary policies any further in spite of a dovish ECB in the same week, we think the dollar is ready for a bullish February.
We will look for buying opportunity if the price stays above 90 and until it reaches 91.8.
