Short-term US Dollar Forecast For FX:USDOLLAR By PercentageOverPips

Possibility of some short term downside or counter trend trades for the US Dollar in the next few weeks! Recently we have seen the Dollar break through a key monthly level and previous lower high structure point impulsively which now means we are bullish on the Dollar as this shows intended direction of price. However, on Friday we have seen a 1-2-3 daily reversal pattern with a strong bearish daily candle close which could suggest that we could be at the start of a pull back/ correction in price. If we do start to pullback, i would be looking for price to show descending corrective movement back into the monthly key level (12100) which is also a 50% Fib retracement for bullish continuation. If price does break this level then the next level i would be watching is the weekly key level (11900) and 61.8% Fib retracement which would be a deeper pull back from the larger swing and could mean a larger move up possibly into the region of 12600.

With this in mind, when looking at currency pairs containing the US Dollar , we would be looking for selling opportunities for counter trend trades in USD/XXX pairs & buying opportunities in XXX/USD. However, this all relies the Dollar retracing. If prices continues bullish , we will have to re-evaluate at a later date.

Feel free to leave any comments!