Long -term charts continue to look unpleasant for the dollar with a bear signal drawing strong confirmation and therefore recovery tends to be difficult to fight for.
Short-term recovery in early March has become our call but the attraction of weekly and monthly graphics that are very bearish proven too much, and the dollar index has collected bearish sessions respectively March 3-6.
Monthly charts are worried about dollars. The index based in October, Rally in November and December, and carried out the highest recovery of 110.17 in January. However, the long -legged North Doji Candles warned the possibility of changes in direction. Doji candles are open and close places are the same or very close.
February price action gives other strong reversal signals, bearish folding lines, and two warnings taken together are significant.
The lines that hit are two-landscape patterns where the real body of the second candle (the shady area between open and close) completely hit the real body of the previous session. In a bull trend, the second candle will have a real body bearish; Sales pressure has excessive purchase pressure.
The monthly chart becomes more bearish because the dollar drops through the main support at the average moving 10 months and the monthly Ichimoku clouds, 105.04 and 104.89, respectively. The next downside target is at 102.51, the 76.4% Fibonacci retracement rate is released from 100.15-110.17 September-to-January rally.
Source: Reuters
