Updated: Aug 27, 2018
When examining the monthly chart of the dollar index I was able to determine last year that the 87's would be been the spot we were going to see a reversal in price. Actually price fell short of hitting this area and has already started making it's journey higher. I get into conversations with traders about the place where fundamentals fit in trading and I always tell them that the Banks always know better than us so why should we ever try to trade with our understanding of the fundamentals.
The institutions have a very big picture of the markets always in their minds and the #usdollar is no exception. As mentioning before, last year I marked the 87's as a spot we were likely to see a reversal from, now why did i choose this spot? It was all because of the supply and demand from the institutions that I was reading and combined with my understanding of market dynamics, I knew that this area was were price would reverse from. Now remember, when I choose this spot, i knew price was a bout to drop because of hitting institutional supply and at the time i didn't take any fundamentals into consideration.
What you'll find is after a move takes place the media will come in and give some fundamental reason why price is moving and it's actually very laughable. After years of doing market analysis and watching the media react to price movements it's just amazing how they always find some reason for th moves. With that said, they must have their reason for the upward move in the dollar recently, even though I could have told you this move was coming at the start of the year.
What's next for the dollar!? The banks are accumulating a massive long position again, slowly their longs are becoming aggressive and they should continue to be until the 100's are hit where I suspect they'll take some profits and then as price declines again, start to accumulate a larger long positions to eventually carry price to the 106's and then eventually the 115's.
How do I know this? This is all based on advanced market dynamics, understandings of how price moves throughout the charts, how the banks accumulate and distribute their positions and if you want to learn, you can at www.whiteoakfx.com/membership.