Short-Term/Daily:           

  • Dollar should move higher off solid geometric support

    • Intermediate-Term/Weekly:

  • Watch for possible bullish reversal around current geometric support.
  • Upside target of 97.874 following bullish confirmation.

    • SHORT-TERM VIEW:

    The dollar recently broke out of circular daily resistance, but is now getting geometrically cornered:

    Dollar_Daily_Nov30_2017-v1.png

  • Dollar must break descending trendline resistance to signal a move higher and a continuation of the circle breakout from earlier this week.
  • Resistance of the line for Friday, December 1st is at 93.38.
  • Timing point of both Nov. 30/Dec. 1 is dictated by the circle point (black arrow) at the center low level of 91.01.

    • The current market also demonstrates strong support around current price levels as well, which can be seen in this next chart:

    Dollar_Daily_Nov30_2017-v2.png

  • If the dollar maintains daily closing prices above the displayed resistance of 93.188 with higher highs, then there is a strong chance that not only will the market crossover resistance of 93.38 (from the previous chart), but the uptrend will continue to the next marked resistance of 97.874.
  • Timing point of Jan 2, 2018, are identified at resistance of 97.874, and is certainly a realistic target.
  • Several reversals prior to the major low are related to this geometry (green arrows), which strengthens the analysis and targets (retrospective confirmation).
  • Alternatively, any break of circular support with lower lows is a strong indication of a continued downtrend.

    • INTERMEDIATE-TERM PERSPECTIVE:

    The dollar is forming a higher swing low at related geometric support for the potential major low of September 8, 2017:

    Dollar_Daily_Nov30_2017-v3.png

  • Support for Friday, December 1 is at 92.66.
  • The week of December 4 sees circular support of 92.74.
  • If support holds followed by higher highs, the market is expected to trend higher.
  • A break below circular support signals an end to the uptrend. (Upside targets to be provided in the upcoming Weekly Report for the week of December 4th)
  • If circular support is broken to the downside, the circle bottom price of 91.096 is the next support level, offering a hopeful double-bottom with the preceding low if it occurs.
  • Further, if 91.096 is taken out, then a major downtrend (long-term) is expected down to the previous major lows of 2012-2014 in the 79.00 area.
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