We are close to entry point in dollar. Explained

We have discussed previously a potential rally in the American dollar. Now we are getting really close to the potential entry. However, accumulation is weak. That means it will take another week or two to get a signal. Accumulation builds momentum. That’s why it is so important. We have very strong fundamental setup for DXY rally:

COT – commercials are heavily long
Evaluation model – the dollar is undervalued
COTSI Index – very high
Intermarket forecast – upside.

We need a technical signal to confirm the coming rally. It always takes some time to get one once we have a fundamental setup. So, likely we will see a bit more of a rally coming in a few sessions, followed by a pullback. It will give the dollar enough time to build momentum and form a signal to go long.

Yorum:

Updated in a new post with chart and explanations