Yahoo Finance Dollar Bears are Gaining Confidence
Despite the calendar being packed, market has its own direction and is continuing the global correction of the American Dollar and this will be the currency that we will focus on today.
First the DXY, so the Dollar Index. Here, the price was playing the ascending triangle pattern scenario. DXY broke the upper, horizontal resistance of this formation and went higher. Most recently, the price was testing the broken resistance as a support but instead of a bounce, we are back inside the triangle. That creates a very dangerous situation for the demand, so the false breakout pattern. Once the price will close a day back inside of the triangle, the sell signal will be activated.
Next one is the USDCHF, where we are still positive in the long-term but we the short-term situation looks bearish. Finally, after few pessimistic candles in a row, the price is ready for a bearish correction to test two broken resistances as supports. That is a very technical movement and should create a great opportunity for the short-time sellers.
Last instrument is the GBPUSD, where the price is aiming the combination of the dynamic and horizontal resistance. This is a typical price action movement and should result with a great selling opportunity. The sell signal will be created, when the price will draw a bearish pattern on those two resistances. In case of a breakout, the sell signal will evaporate very quickly.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
