USDOLLAR - Reflection Point

FX:USDOLLAR   Dow Jones FXCM Dollar Index
Hello Everybody, here we have the USDOLLAR INDEX on the Weekly chart. Over the past few months we have pretty much just been melting to the downside since making a double top around 12500. Price is now at a very significant level testing both the neckline and a major weekly descending trendline which was broken in March.

We currently have two fibs in play, a bullish fib on the weekly timeframe with price hovering above the 786 Level and a daily bearish fib giving us some room to come down, this will allow us to continue to short the Dollar on the lower timeframes.

We are hoping in the next couple of weeks we will have a clearer indication of where the dollar is heading in the coming months, should next week(s) candle close below the 786 level instead of rejecting it then we are anticipating further Dollar weakness.

If you look below at the daily timeframe you can see that we are still making higher highs and higher lows, respecting the bearish daily 618 fib level, EMA and trendline therefore the dollar can continue lower to around 11500 before either a daily correction or a much deeper pullback takes place.

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