USD Trades in Consolidation with Bearish Bias
The below is the weekly chart of the US DOLLAR. The greenback continues to trade within a rectangle pattern (parallel red shaded horizontals) as the bulls and the bears battle it out for supremacy. The breakout direction will determine if it is an accumulation or a distribution pattern. Current price action has a distribution bias until proven otherwise. The candle from two weeks back is a bearish reference candle i.e. it has the highest high from a 3-candle pattern. Moreover, last weeks candle broke below and closed below the reference candle’s low (aqua horizontal) - bearish follow through. If price breaks below the lower rectangle boundary and the RSI drops below 50 this will give weight to the distribution scenario. We continue to monitor.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.