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How far will the dollar decrease go?

Dollar Index Daily

Dollar Index Daily Chart
Dollar Index Technical Chart 1
Dollar Index Technical Chart 2

Technical Picture:

  • Consolidation
  • DeMarker continues to enter the oversold zone
  • Sequential prints a 9, signaling the end of the corrective move
  • MegaPhone prints a 7, confirming the oscillator
  • Price action forms a bearish pin bar
  • Triggered Head & Shoulder formation with a target around 1213
  • MA65 and MA200 as moving resistance
  • Break below 50 FIBO

Conclusion:
I expect the price to break below 50 FIBO, and after a retest, continue towards testing the 200MA and diagonal resistance.

Alternative:
I anticipate the price will hit the target of the Head & Shoulders formation at 100% around $1213, and then continue towards 61.8 FIBO, which is a strong horizontal support level.

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