FXstret.com (Barcelona) - The Dollar has dropped from levels above 100.00 in mid October to bottom at 87.00 in December an January and rise back to levels at 100.00 on early April.
According to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, the pair has formed a H&S figure: Price action since October can be seen as an inverse 'head-and-shoulders' formation with a 'double bottom' at 87.10 as the 'head' and two rather small, irregular 'shoulders' around 96.00.
In Elliott's points of view, lat weeks' rally might anticipate a top around 102.00: Last week's close above the 'neckline' has seen prices squeeze over the psychological 100.00 level, pushing momentum to its most bullish in four years. This should set off a brief but sharp short squeeze, probably beyond the 102.00 area that we had originally allowed for. Realistically we shall have to allow for a rally as high as 106.00/107.50 before a sudden top emerges.