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USD: Weekly update for 16 Jul

Update for previous USD call to 97 target

This is a new channeling proposal. Last one didn't work.


Commentary:
1. The support at 82 is being tested right now. On long term dollar chart (30 years back) 80 is seen as support. Supporting it at 82 level would be very bullish for the trend.
2. The proposed channeling needs confirmation. If next 2 weeks don't break it, this is the channel and we have the bottom.
3. I am projecting 2 paths for 97 target. The purple is very irrational and impulsive. The second is slow but more stronger and it might go even higher than 97 if it is taken.
4. At 90 we have a very strong resistance, if this level isn't broken upwards we could return to 76, and the dollar chart will look like a 6 year triangle continuation pattern on the monthly(last 30 years chart), which would be bearish with targets to around 50

If the trade works, I will be inclined for the extremist target of 6 week rally, we have favorable fundamentals and markets have been crazy for the last few years.



Disclosure: Long the dollar

Disclosure: Short EUR/USD, Long USD/CAD