Headline news continue to favour the dollar bull. Comments made by Fed Powell seems to deviate from Miss Yellen latest dovish speech. The caveat from the latest speech has certainly helped the dollar to stop running lower after 3 weeks of selling. Dollar index is effectively trading within a symmetrical triangle and price action RESPECT Fibonacci retracement on every swing high and low.
Current price action find resistance at previous swing 38.2% and latest swing of 50% Fib which is the heavy confluence zone. In addition, the daily 20 and 100 ma 11881 and 11901 resides there which added weight to this resistance. Only a break above these levels will allow the bulls to target the upper channel of this triangle and with a possibility of moving higher.
The Elliott Wave count on a downside pressure often result in 5 waves while corrective rally is impulsive but looks checked to an ABC correction. Current price action could replicate such move as well.
Long @ 11839 - 11816 levels (what was support now resistance)
- assuming the retracement is B to complete
- an IHS formation could warrant higher prices
- Stop @ 11800
- Target @ 11924 - 11946 levels
Current price action find resistance at previous swing 38.2% and latest swing of 50% Fib which is the heavy confluence zone. In addition, the daily 20 and 100 ma 11881 and 11901 resides there which added weight to this resistance. Only a break above these levels will allow the bulls to target the upper channel of this triangle and with a possibility of moving higher.
The Elliott Wave count on a downside pressure often result in 5 waves while corrective rally is impulsive but looks checked to an ABC correction. Current price action could replicate such move as well.
Long @ 11839 - 11816 levels (what was support now resistance)
- assuming the retracement is B to complete
- an IHS formation could warrant higher prices
- Stop @ 11800
- Target @ 11924 - 11946 levels