The dollar has surely been in rally mode lately.
But nothing lasts forever. The dollar need a pause, at least for a short while.
When hitting the red top, the dollar will stall its rally and fall.
Price is stretched way above its moving averages and has so far made lower intermediate lows all year.
There are 2 possibilities in the end:
1) Bear market scenario:
Price has made lower intermediate lows all of 2016. The set target is less than its 2 previous highs and fit perfect this scenario.
The move up to the target will complete head and shoulders pattern setting it ready for a steep fall.
2) Bull market scenario
Price will stall temporarily anyhow. It is late in its intermediate cycle and the RSI overbought + price stretched far above moving averages.
After a pause it can resume its move upwards toward higher glory.
But nothing lasts forever. The dollar need a pause, at least for a short while.
When hitting the red top, the dollar will stall its rally and fall.
Price is stretched way above its moving averages and has so far made lower intermediate lows all year.
There are 2 possibilities in the end:
1) Bear market scenario:
Price has made lower intermediate lows all of 2016. The set target is less than its 2 previous highs and fit perfect this scenario.
The move up to the target will complete head and shoulders pattern setting it ready for a steep fall.
2) Bull market scenario
Price will stall temporarily anyhow. It is late in its intermediate cycle and the RSI overbought + price stretched far above moving averages.
After a pause it can resume its move upwards toward higher glory.