short DollarAs we were looking for decline on the DXY 0.10% , bulls took over control. Here we go with my weekly analysis on the U.S. Dollar Index ;
A (orange)(closed) : Price clearly bounced on our bullish trendline . Blue area as been broken in the beginning of the week, my bearish bias was completely canceled. No break and no resistance, this direction bias is now closed.
A (blue) : Previously our plan C, I see the DXY 0.10% showing some significant strength signs;
Blue area as been broken which was our resistance. Next area to watch for a break through is the yellow one.
Price bounced on the bullish trendline .
A nice reverse head and shoulder is forming, looking for a break of the neckline.
Price found support right at the retest level after the trend line breakout, red area.
Support found on both 50(aqua) and 200(gray) exponential moving averages after a bullish crossover.
A nice regular bullish divergence also indicates a nice trend reversal, highlighted by the purple arrows on data and indicator window.
Target is 96.00, optimal trade entry area for shorting.
B (red) : Fake bullish move to the yellow area and by dropping back resulting as a price ranging.
Only price action can determine those bias, even none of them could occur.
Bias as changed for now but still bearish overall, I am currently looking for bullish move on this index, driving all USD based pairs.
Dollar strengh = USDXXX UP / XXXUSD DOWN
Dollar weak = XXXUSD UP / USDXXX DOWN
