Since the middle of July the dollar has sold off like it was a social media IPO. It has fallen 6% from its high with much of the selling coming within the last two weeks. But all this selling may be over as the Dollar has finished a measured move of its bearish descending triangle and is nearing support.
Descending Triangle Measured Move: The dollar formed a descending triangle pattern from its July 24th high at 84.24. The edge of the triangle was this decline off the high and the base was at 81.40, where its previous low was at and where it based. Once this level broke the dollar sold off declining around 3%. The dollars descending triangle pattern’s target was about 2.80 measured from the based of 81.40 to 84.24. The triangle’s price target is then 81.40-2.80 which 78.60, which the dollar almost hit on Friday.
Nearing Support: The dollar’s selling may face some head winds as it nears support at 78.60 which held the dollar up early in the year. This area may act as strong support and present some buying pressure for the dollar.
Overall: The the dollar has decline may be nearing an end or a pause as it waits to figure out its next move after declining 3% in over 2 weeks and 6% over the summer. But one thing is certain if the dollar cannot stay above the support it will move much lower.