Only two levels can tell you which way to go
For the dollar index, the question is if we have a bottom in place after that sturdy reading of the US NFP. We know that we are way too oversold on the price curve and the price is bound to correct itself. To clear the noise and have a more logical discussion, we have used the candle session study and combined it with the simple price study.
A candle session study is a useful tool in determining the potential reversal which is established by comparing up or down candles to see where the potential session highs or lows are. The potential reversal tends to occur at the count of 8, 10 or 13. We can already see that the downtrend exhausted at the 10th count and now we have our first count which is giving us a signal that a new trend is emerging.
However, in order for us to have a clear indication of this, the two important levels matter a lot. The break of the 93.77 level would confirm that the trend is moving to the upside and the price would continue to correct itself. The break of 92.69 would imply there is still more steam left in this downtrend and we are still going to move lower.
