Here we have a VALID ABCD MOVE on FX:USDOLLAR , that has just completed. For the past 3 weeks US DOLLAR INDEX has been in an ugly consolidation. This can be clearly seen by looking at the 50 ( ). Market has been constantly breaking above and below the moving average, also for the past 3 weeks. According to my analysis, currently US DOLLAR INDEX has no clear direction yet. The main reason for this could be the POSSIBLITY of Fed Interest Rate Hike this coming September. So traders and investors are being VERY CATIOUS about where to invest their money.
I wouldn't be surprised to see US DOLLAR INDEX consolidate even more from here on forward, possibly up to the Fed Interest Rate Hike News. So right now market is at the entry price and we should consider this trade setup to be ACTIVE. Also note that we have a really good SUPPORT ZONE below, from where the market has just reacted. See the chart above for more details.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Good Luck :)
CORRECTION: I misspelled the 2nd target as " TG #1: +42 Pips", it should read " TG #2: +42 Pips".