Similar to last week’s analysis, the US dollar continues to follow an upward trend. However, unlike last week, the price has broken the wave conditions and adjusted its channel code. The large T1 wave has not ended at the 106.3 level at c but has continued through two more phases, d, and is now moving towards e to form a continuing downward pattern.
The US dollar is likely to retest the peak area again to form e. The price is at the narrow end of the pattern, where a reversal is likely. Therefore, despite being in a short-term upward trend, we should not expect long-term buying positions. Instead, close short-term positions and wait for a confirmed reversal to hold long positions from T1 down according to the second model. This will also directly impact gold and oil prices in the near future.
Combining appropriate strategies in each phase and strictly adhering to risk management rules is the key to opening the door to a prosperous and happy life.
We wish investors smart and effective investment strategies! Stay tuned for the next US Dollar updates.
By Pham Thanh Bien
