I noticed that only a few people are watching the the US Dollar Index . If you want to be successfull you have to watch this index every day. It's more important than the EurUsd ....
What happened exactly in the US Dollar Index today? What was the fundamental reason that price reversed?
Funny but there was no fundamental reason for the reversal. It was a clean sentiment reversal as it always happens at the intermediate bottoms.
These movements are caused by human feelings and sentiments : fear & hope.
When we broke below 92.65 two things happened:
1. Bulls had lost all their hopes and stopped out their positions because they believed that price will fall unstoppable to the next at 88$. These bulls are not watching cycles. Their fear destroyed them.
2. Technical bears entered into short positions below 92.65 in the hope of a great decline. They also not watching cycles. When price broke down and there was no follow through they started to close their short positions and price turned up immediately. This late in the intermediate decline it doesn't matter if price breaks down a big level. There will be no continuation of the break up or the breakdown...
So in the following weeks the dollar will rally . There is no question this reversal will hold in the following days. But don't wait for price to tag the upper at 100. Just forget it. And forget the dollar bull also. We will rally to 96-97$ in the following weeks and the dollar will fall below todays low. The weak dollar will affect everything: , gold , stocks, oil , other countries' currencies etc.
This will be the price what the World has to face for the lots of billions of printed dollars in the following years::
a WEAK BUCK.
Patterns and indicators are worthless without the cycle analysis.
TIMING IS EVERYTHING.