The dollar climbed last week just as expected as it formed an inverse head and shoulder after the completion of the 5th Elliott wave.
However, the dollar faced strong selling pressure just before reaching key support turned resistance level at 91.8 and shaved off entire gains the day before.
Looking back into January 2018 where the dollar also fell to the same low, it is very likely that the rebound might have reached the top of a ranging market.
Therefore, this week we expect the strong selling pressure from last Friday to continue this week, first testing support at the rising trendline then finally the support at Fibo 61.8.
Otherwise, it could also climb again and retest the resistance at 91.8 before reversing the short-term bull again.
However, the dollar faced strong selling pressure just before reaching key support turned resistance level at 91.8 and shaved off entire gains the day before.
Looking back into January 2018 where the dollar also fell to the same low, it is very likely that the rebound might have reached the top of a ranging market.
Therefore, this week we expect the strong selling pressure from last Friday to continue this week, first testing support at the rising trendline then finally the support at Fibo 61.8.
Otherwise, it could also climb again and retest the resistance at 91.8 before reversing the short-term bull again.
