US dollar at major support area
The US Dollar Basket has been selling off throughout October. There is clearly the potential for further downside given the size of the previous selloffs down to $92.75 and $94.20. However, the long lower shadow on yesterday’s lowest candle shows clear support existing in this area, which marks the convergence of the ascending trendline and 61.8% Fibonacci retracement.
Very small indecision candles confirm this hesitancy and thus I await a break below $95.23 to gain confidence of a further move lower.
For now we have not seen any signs of a possible reversal and thus there is nothing too major to worry about. However, a move back above $95.78 would bring about an increased potential for a bullish reversal.