The Dollar remains within a correction to the major reversal from 94.05. Most likely a triangle that should ideally hold the 98.90 support until an eventual break up to and beyond the 1.0850 high. The question is timing and levels.
Last week we used the SHAFT triangle..that is the sentiment shifts within a triangle to show that it was not ready to break higher that the market anger and frustration suggested it remained in between the C and D legs. Indeed the loss of 1.0075 confirms that it remains at best in a C leg to a c=a objective of 99.55. Now it is the C leg that is the most dangerous in a triangle to the downside and has t prove itself with an eventual break back above 1.0170 now to signal a D leg run at 1.0310-1.0420 before a much safer and better buying opportunity in the E leg drop below parity. A loss though of 98.90 clearly suggests it probably a B Wave triangle projecting another c=a target of 97.60 from 1.0520 but even 95.45 from the last 1.0310 high.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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