The Dollar index has broken all short-term support levels and reached our target as we predicted in the previous analysis. All downward sloping trend lines have been broken. The upward move is impulsive. The pattern of lower lows and lower highs has now been violated by the index since prices have made a higher high at the 80.95 area.
Prices continue to trade within an upward sloping channel in an price formation that looks like an impulsive wave. The previous high at 80.70 that produced the new low at 79 is now surpassed. The trend is now bullish, and purchases are possible after pullbacks towards 80.
The 4-hour chart shows clearly how the trend has changed to upward in the intermediate degree, since the downward sloping trend lines are broken. The upward move from the lows could be over, and we should target to buy once prices make a pullback towards 80. There are increased chances that the longer-term trend has reversed upwards. This will be confirmed only if the pullback does not push prices to new lows below 79. So it is clear that bulls should have 79 as stop. On the other hand, anyone with short positions should close them once the trend lines are broken. Concluding, we are in favor of a longer-term trend reversal with 79 as stop for our bullish scenario. We buy upon pullbacks with that level as stop.
The material has been provided by InstaForex Company – www.instaforex.com
The Dollar index has broken all short-term support levels and reached our target as we predicted in the previous analysis. All downward sloping trend lines have been broken. The upward move is impulsive. The pattern of lower lows and lower highs has now been violated by the index since prices have made a higher high at the 80.95 area.
Prices continue to trade within an upward sloping channel in an price formation that looks like an impulsive wave. The previous high at 80.70 that produced the new low at 79 is now surpassed. The trend is now bullish, and purchases are possible after pullbacks towards 80.
The 4-hour chart shows clearly how the trend has changed to upward in the intermediate degree, since the downward sloping trend lines are broken. The upward move from the lows could be over, and we should target to buy once prices make a pullback towards 80. There are increased chances that the longer-term trend has reversed upwards. This will be confirmed only if the pullback does not push prices to new lows below 79. So it is clear that bulls should have 79 as stop. On the other hand, anyone with short positions should close them once the trend lines are broken. Concluding, we are in favor of a longer-term trend reversal with 79 as stop for our bullish scenario. We buy upon pullbacks with that level as stop.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: