Dollar heading for 38.2% retracement

Dollar Index plunges to complete 23.6% retracement – Shooting stars played well!

Posted Monday, August 20, 2018 by
Arslan Butt • 1 min read

What’s up, fellas.

The dollar index traded nicely in line with our forecast Shooting Star in the Dollar Index – Good Time to Catch Retracement. The idea was to stay bearish below  $96.75 as the dollar index was expected to take a bearish turn to complete retracement at $96.25 (23.6%) and $95.85 (38.2%).

Dollar Index - Daily Chart

Dollar Index – Daily Chart (Aug – 16)

 

Until now, the dollar index has completed the $96.25 (23.6% Fibo) and it’s ready to fly for $95.85. All this began with a candlestick pattern shooting star, which indicates a potential for a bearish reversal.

Dollar Index - Daily Chart

Dollar Index – Daily Chart (Aug – 20)

So, this week we can expect a slight buying in the dollar but right after that, the dollar index is very likely to go south for $95.85. Good luck!

 

 

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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