Has EURUSD Bottomed? Has Dollar Topped?

Back in February 2018 my view for the Dollar was bullish as I showed in my tweets... The Dollar index reversed and started a move towards 96-97 as expected... now what?

Now it is time to be bearish the Dollar once again….I believe wave 2 or B has been completed and we will see another strong leg lower for the index. And as EURUSD its major component, I will be expecting EURUSD to move higher than 1.2550. Bold call…..am I crazy? time will tell…let us see some charts.

Dollar index

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Major bearish Divergence in the RSI. The uptrend ended right at the 61.8% Fibonacci retracement where we usually see 2nd waves end. What Dollar bears need to see now is an impulsive decline.


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(Click on image to enlarge)

On the other side, EURUSD is showing bullish divergence signs and is now challenging a major trend line resistance. Price is about to break out and above a one-month trading range. If bulls manage to recapture 1.15 and stay above it, then a big step in favor of the bullish EUR bearish Dollar scenario will be made. It is too early to tell if a major low is in or if we will see one more new lower low... but looking at the bigger picture I believe that we are at a point where we should favor EUR bullish positions.

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