The Challenge for the Dollar

What I learned today. Look for more conformation, and scale back trades if there is no reason to be in them The first chart is three hour chart of the dollar at 11,901 which was where the hammer candlestick formation that was shaded in yellow occurred the break happened and the dollar continued to rally for nine hours or three long bullish candlesticks. to 11, 950 and then pulled back up and where it retraced back to its origin what we noticed from the Fed meeting was the doji candlestick 7.26.2017 which formed at 2:00 and the massive breakout to the downside which was fresh resistance for the dollar index because it traded in such a harsh way it could be the next stopping point if the dollar does decide to get bullish the downtrend is still intact even though price is at extremes this is a series of lower highs and lower lows. The second chart is the daily chart of the EUR/USD this view of the blue real body (today) almost engulfs the red real body of the prior day and it is still bullish, the 1.17750 level is so important now. A break above to newer highs would mean that the trade would be to locate areas of resistance above (like in the red zones I highlighted previously at 1.18, and that begs the question if the EUR/USD can eve get to 1.20 The two hour chart of the EUR/USD is acting well and the range is very well defined. The 1.17570 has a tendency of holding and so does one 1.625, from this point of view it seems that we are stuck. I included a trendline in the chart with the black baground which fits the highs of yesterday and it is a trendline that is in the middle; its not too tight and is not too loose. -Damian