Due to what we saw for the last couple of weeks in terms of structure I start to believe that we might see more dollar weakness instead of a trend continuation. My view for AUDUSD is biased long for a very long period of time already, my bias for USDCAD is short for a long period of time. I realize that more than 50% of the dollar index comes from EURUSD and this would indicate that there is more Euro strength ahead for what might be a wave C instead of a triangle. But that I will post later.
Regarding the dollar index;I will be looking for the end of this correction in next weeks trading session to sell the dollar index. Which might test 90 and maybe even lower.
Keep in mind that this is not a guaranteed trade and there is no such thing as a guaranteed trade but IF structure tells me to sell I will simply sell it with the arrows showing my bias of what to expect once we see the bearish break.
Regarding the dollar index;I will be looking for the end of this correction in next weeks trading session to sell the dollar index. Which might test 90 and maybe even lower.
Keep in mind that this is not a guaranteed trade and there is no such thing as a guaranteed trade but IF structure tells me to sell I will simply sell it with the arrows showing my bias of what to expect once we see the bearish break.
So what has changed and why did I post my bearish scenario as well ? I'll try to explain it by means of a chart:
As you can see in my previous post I was looking for an impulse to unfold. Instead I believe we saw a zig-zag correction by means of a 5-3-5 structure for ABC. This suggests that we are in a more complex correction and that price isn't ready yet for a bullish continuation in terms of the bigger picture.
So now we have to determine whether this count is correct or not. I will watch price action for now because I favor a move lower soon. Only if we see an acceleration higher I will start buying after a consolidation. Since EURUSD determines more than 50% of the dollar index we can't ignore what's going on in that pair. I updated EU this morning and as long as that triangle base line is in place it is simply almost impossible for the dollar index to accelerates much higher.