The Dollar in the daily timeframe has since being trading within a descending
triangle. A descending triangle is a bearish formation that usually forms
during a downtrend as a continuation pattern but occasion serves as a reversal
pattern at the end of an uptrend.
The uptrend in the index has thus failed to trade surpass
the 103.83 high reached on 03/01/2017 as a result we continue to see lower
highs at 102.25 and 101.34 while it finds support at 99.41.
Currently the index is trading around the support with RSI
14 day period trending down.
A steep sell-off would surface when the dollar closes below resistance
turned support at 99.12 on high volume. On the other hand a resistance to go
below the support level would see the index maintain her ranging behavior
within the triangle until a breach above the downward trendline to ascertain a
renewed uptrend.
Happy Trading Day
Adeshina Adetunji, CFTe
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