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

(Click on image to enlarge)

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.

EURUSD

(Click on image to enlarge)

(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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