Background
Dollar seems to be struggling to create pivot around current price area.
This is due to current U.S. political turmoil and abrupt U.S policy shift in Mid-East that are fundamentally weakening dollar's safe haven position.
In terms of price actions, it's hard to say dollar is necessarily on uptrend especially when we shift our focus on short term.
Price is still struggling to top $100 - and I expect this to continue at least for a while until we see some clear direction in Global Economics.
Technical Analysis
Now onto Technicals, we are seeing dollar attempting to make major reversal pattern on current level.
That means last decade long bullish dollar might have come to an end. While this doesn't necessarily signal weakening of U.S economy,
it could be possible that there could be shifting gear within U.S monetary policy, especially with on-going U.S - China trade war.
Weekly oscillators are signaling possible reversal as well. While we are at support level on daily, we are yet to see any meaningful price action in this area, and failing to do so in next few days will be a dangerous signal to dollar price.
98.5 - 99 area currently serves as consolidation area and break out of this level could mean beginning of new major trend.
In this scenario, we are looking at dollar breaking out towards downside and that should mean price will first test early 98 - late 97 level.
Major movement that would trigger institutions to reconsider their current position would be break of early 97 area.
This level is crucial for U.S. Dollar and failing to hold this are would probably be caused by shift in monetary policy.
Action Plan
Short-Term Trend: Down
Position: Short
Next Plan: Add more to short when price breaks 98.
Thank you all for reading and I hope good trading day for you all!
Dollar seems to be struggling to create pivot around current price area.
This is due to current U.S. political turmoil and abrupt U.S policy shift in Mid-East that are fundamentally weakening dollar's safe haven position.
In terms of price actions, it's hard to say dollar is necessarily on uptrend especially when we shift our focus on short term.
Price is still struggling to top $100 - and I expect this to continue at least for a while until we see some clear direction in Global Economics.
Technical Analysis
Now onto Technicals, we are seeing dollar attempting to make major reversal pattern on current level.
That means last decade long bullish dollar might have come to an end. While this doesn't necessarily signal weakening of U.S economy,
it could be possible that there could be shifting gear within U.S monetary policy, especially with on-going U.S - China trade war.
Weekly oscillators are signaling possible reversal as well. While we are at support level on daily, we are yet to see any meaningful price action in this area, and failing to do so in next few days will be a dangerous signal to dollar price.
98.5 - 99 area currently serves as consolidation area and break out of this level could mean beginning of new major trend.
In this scenario, we are looking at dollar breaking out towards downside and that should mean price will first test early 98 - late 97 level.
Major movement that would trigger institutions to reconsider their current position would be break of early 97 area.
This level is crucial for U.S. Dollar and failing to hold this are would probably be caused by shift in monetary policy.
Action Plan
Short-Term Trend: Down
Position: Short
Next Plan: Add more to short when price breaks 98.
Thank you all for reading and I hope good trading day for you all!