Participant

The dollar is beginning to look very over bought on the weekly candle chart. The ADX line touching 60 level and the MACD crossing over just below 0.04, both showing strong indications of over-bought. The candles for the previous two weeks have a trend reversal formation; given the distance from the Ichimoku cloud it would seem likely a retracement is on its way. The daily candle chart is showing some support on the top side of the Ichimoku cloud, however any breach could lead to further downward movement. A 33% retracement would indicate a level of 1.2150, this would be the next support area as it would coincide with the lower side of the Ichimoku cloud on the daily candle chart.

 
Participant

You make good calls. Yes it is overbought looks like going down to 1.24 and lower now.

 
Participant

Thanks 😉

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