THIS WEEK FOCUS
At the start of this week, we saw 2 potential scenarios that can play out for the US Dollar –
Scenario 1 – price completed Wave iv and is now moving higher to complete the 5th wave up.
Scenario 2 – price has yet to complete wave iv and can potentially still see price moving lower towards 96.52 – 97.60 area.
We needed more information earlier this week to determine which scenarios will be of higher probability.
With the most recent price development, we are seeing an ending diagonal structure with a bearish divergence forming and thus giving us a higher chance that scenario 2 will be happening this week.
A break below 100.42, and more importantly 100.25, can see price easily test the 99.57 – 99.79 area.