The majority of traders have been calling for the demise of the dollar for months. The chart actually continues to bottom and produce a healthy posture for further and sustained upside moving forward. In a world of fiat money, the U.S. will retain its advantage as the shiniest piece of garbage. Note the blue falling wedge that helped bounce price in May. The indicators were positively diverged providing some fuel for the upside but note the double blue circle for RSI showing an ever-so-slightly lower low. That pesky RSI has caused the dollar to languish along on the low side the last few weeks since by making the lower low, RSI wants price to come back down to test the 73-ish level. With the price action for the last three months, this negative energy is slowly getting burned off. Note the thin red lines showing all indicators higher over the last four months, thus, if price touches 73-ish, that would be positive divergence and lock in a bounce for the dollar.
Thus, the projection is that the chart continues to bottom here and extended upside for the dollar is expected moving forward. The chart is showing an inverted H&S vibe that can be explored closer on a daily chart. Also note the vertical symmetry with 73 and 89, that is a difference of 16, half of that is 8 which is the 81 level; all these levels critical S/R for the dollar. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
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