Since Dec 2016, every time the US dollar has reached a price of $103 we have seen HUGE moves to the downside. Will history repeat itself? Currently we have reached a high of $103.92 which has not been seen since Dec 2002!!! A selloff is starting to begin as a new month has begun. If we take a look at our monthly RSI, a slight bearish divergence is being created....
We are at a critical point in the chart that could determine the next several months of price action. We have entered our green box of support around $4100 which leaves us two options. Option (1), Buyers find support yet again at this level and we rally all the way back to our trend line - $4500. Option (2), We end up losing this support, flipping it into new sell...
Although the 3D chart looks very bearish, we have found support at our downwards sloping support on the 4H. This has created a bullish divergence with lower lows in price action and higher lows on the RSI as labeled in the chart (Black Arrows). We are also in what seems to be a falling wedge pattern (pink lines) which generally breaks out to the upside.
After finding support at our 1D trendline, we have also found support at our downwards sloping support on the 4H. This has created a bullish divergence with lower lows in price action and higher lows on the RSI as labeled in the chart (Green Arrows)
As long as we hold the 1D candle bodies on this trend line, we could see a move back to the upside.