by Johan Kriek (jkriek@fxinstructor.com)
Just a quick observation from my side of the universe. Remember the huge falling wedge on the Dollar Index daily chart?
Well, it’s still intact:
Falling wedges, when found in a bear trend signals reversal. The problem with falling wedges is it can keep on making new lows forever until the violent breakout finally sets in
But…
I have seen how the DX has been fighting with 74.77 and failed to break through this and make a new SIGNIFICANT low. Look at the 1 hr chart below:
I am not calling a bottom here but hey, look at that. Any more dollar weakness can be expected if the DX trends below 74.77. But, for the time being I am holding on my horses as it is getting increasingly risky to short the Bucky at these levels and who wants to sell at the bottom? Not me
Have a good trading day and good luck
Johan Kriek