Saturday, July 22, 2017

Dollar Decision

Future Dollar direction may be determined this week, as the FED meets for what many describe as a ho-hum decision to maintain their previous stance.  Pundits expect nothing special from them, and that the reserve currency will continue its current slide; however, the FOMC meeting will be followed by Q2 GDP results on Friday, which could have a great effect.

If next week replicates the last two, a candlestick Three Black Crows pattern will have formed.  This is very bearish, as even the previous action on this Dollar Index chart (DXY) makes clear.  However, if past is prologue, a hammer or a spike is just as likely, which would complete a Head and Shoulders bottom.  It's a coin toss, and most folks are betting tails.

Currency Conundum
When will these gaps fill?
How did this happen?

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