Under the past weeks I've been posting a dollar reversal scenario (https://www.investing.com/analysis/us-index-brent-stocks-weekly-analysis-200217789), this week we are closer to that output. US Index broke a 6 month resistance downtrend on late September. Oscillators on 1W chart were showing enough strength to break resistance line and it happened. It rallied four straight weeks and found resistance at August Peak before correcting.
On this week an inverted Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 94.25. Signs of reversal are already piling up:
On this week an inverted Head & Shoulders pattern was brought out into the light. Although a reversal is not yet confirmed until price manages to break neckline at 94.25. Signs of reversal are already piling up:
- 6 Month Resistance Broken late September
- Rally to August Peak
- Support found this week
- Inverted Head & Shoulder pattern showed up this week
- Hammer candle on Friday 13th
- Economic Data support a stronger dollar: ISM, PMI, ADP NFP, Jobless Claims, Unemployment Rate, PPI
