Even tough early today I was considering to short EURUSD with a very nice RR and trying to ride a long bearish wave, I had to take another look to the big picture to realize that maybe dollar weakness is not over yet.
I think we might see this pair reaching 1.09 or even 1.10 before changing direction. EURUSD has been inside a descending channel since 2008, (yes 2008, isn't it crazy?) Looks like price is going to touch the upper line of the channel one more time. At the same time, that would mean that it retest the lower line of a triangle that started on 2017.
If we analyze DXY a bit, we can find similar structures and a little more room for dollar to go south. More specifically, at 99-100 level we can find a huge support that happens to concur with the upper line of a triangle that started to take shape in 2017. (Does it sound familiar to you?)
If this idea comes true in the next couple of days, then I will consider a pivot point, a change of direction in big timeframes, probable for the rest of the decade.
I think we might see this pair reaching 1.09 or even 1.10 before changing direction. EURUSD has been inside a descending channel since 2008, (yes 2008, isn't it crazy?) Looks like price is going to touch the upper line of the channel one more time. At the same time, that would mean that it retest the lower line of a triangle that started on 2017.
If we analyze DXY a bit, we can find similar structures and a little more room for dollar to go south. More specifically, at 99-100 level we can find a huge support that happens to concur with the upper line of a triangle that started to take shape in 2017. (Does it sound familiar to you?)
If this idea comes true in the next couple of days, then I will consider a pivot point, a change of direction in big timeframes, probable for the rest of the decade.
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This is another possible scenario where it would take longer time to reach those levels, probably mid February: