- New year came along, Dollar has been consolidating/accumulating just slightly higher than the lows of the downtrend.
- Bears have made multiple attempts at breaking the lows of the range but have not succeeded thus far.
- If we do bounce from the bottom again, pay attention the midrange as it's tending to have strong downward pressure at that level.
During natural market movement, we will always see price ebb and flow. Even if price seems to be trending for a long time, there will be a period of time where that trend will end and price will revert to fair value before continuing the trend move or reversing completely. To spot this we look for exhaustion. This will usually be signalled by a break of the trend. Price will, more times than not, begin to accumulate, especially if it has trended for a significant period of time. There will however be instances where price will just create a new high outside of the trend, retrace back and then continue making new higher highs and higher lows. In this example we see a very nice period of consolidation/accumulation. During this phase we are simply just ranging, we will be looking for longs at the bottom and shorts at the top until we actually do break out to either side. Bias is to break the upside but we will prepare for either.