by Johan Kriek (firstname.lastname@example.org)
First of all, before I continue with this post, please note that I AM NOT PREDICTING that the dollar will bounce. This is nevertheless a very interesting observation….
Look at the Daily chart of the Dollar Index below:
Look at that chart again.
EXACTLY a year ago, the dollar bounced at roughly 76.00 and skyrocketed. Now, a year later, we can see how the index is once again converging with 76.00
Could we see a bounce next week? I think so, especially with the G20 Summit in Pittsburgh happening on the 24th…
Finally, I found another pattern backing a move to the upside. Look at the chart below:
That is an Inverted Head and Shoulders. Such patterns are found at the bottom of a bear trend and clearly we can see that the preceding trend on this one hour chart is bearish.
You can make your own call here but wow, this is thoroughly interesting.
I hope you have a great weekend and let’s see what happens next week before we unpack the tin foil hat