A messy structure is forming up for the dollar index. Price rebounded strongly after a retest of the mid channel line and it can really go either way right now. We have a slight and short-term bias to the but price should be capped to the top of the channel and will need to take out the leverage longs before it can move higher for extended periods of time.
BULL CASE
A timebased correction where price hovers around the current levels can happen before another pump up to test the top of the channel at 95
BEAR CASE
A correction down to the 93.710 can happen rapidly and we will want to enter long at the test of the mid channel.
PS: Manage your position size, structure is messy and price range is capped. Do not hold positions for too long as we near the end of the year.
BULL CASE
A timebased correction where price hovers around the current levels can happen before another pump up to test the top of the channel at 95
BEAR CASE
A correction down to the 93.710 can happen rapidly and we will want to enter long at the test of the mid channel.
PS: Manage your position size, structure is messy and price range is capped. Do not hold positions for too long as we near the end of the year.