Since mid-2018, the dollar has been climbing slowly but steadily, forming a rising channel that lasted over 2 years.
The structure started to deform as volatility picked up violently, causing the price to break below the channel, then above the channel in the next moment.
Well, if you take away the first two breakouts of the bottom and the top of the channel, the dollar forms a very steady rising channel.
And what's happening now is that the bottom of the channel was broken again last week.
A major difference from the previous breakout was that the price came down from a key supply zone just above 102 which means the market is driven by a huge selloff of the dollar.
Additionally, the MACD is crossing below -0.53 for the first time in over 2 years. The MACD is a useful indicator to indicate a bull or a bear market in the higher timeframe.
Fundamentally, the Fed is unlikely to start raising rates any time soon as the US economy just started to unlock.
Therefore, we have enough indications that the dollar has entered a bear market and the first level to watch out for will be the previous low at 95, to see if there's any strong indication of a rebound.
Once the price falls through, the next target will be 93.5 where the price face with a rising trendline in the monthly chart.
The structure started to deform as volatility picked up violently, causing the price to break below the channel, then above the channel in the next moment.
Well, if you take away the first two breakouts of the bottom and the top of the channel, the dollar forms a very steady rising channel.
And what's happening now is that the bottom of the channel was broken again last week.
A major difference from the previous breakout was that the price came down from a key supply zone just above 102 which means the market is driven by a huge selloff of the dollar.
Additionally, the MACD is crossing below -0.53 for the first time in over 2 years. The MACD is a useful indicator to indicate a bull or a bear market in the higher timeframe.
Fundamentally, the Fed is unlikely to start raising rates any time soon as the US economy just started to unlock.
Therefore, we have enough indications that the dollar has entered a bear market and the first level to watch out for will be the previous low at 95, to see if there's any strong indication of a rebound.
Once the price falls through, the next target will be 93.5 where the price face with a rising trendline in the monthly chart.
