In the past when stock markets take a dive CHF and JPY is where the flow of money would normally be headed. In this new normal the greenback has outperformed and acts as a safe haven. Today has been no different, the dollar is 0.41% higher against CHF and 0.26% higher against the yen and the world major indices are in the red.
Looking at the chart, it looks like a key reversal is taking place. The high lows have been marked out by the black circles. Now the previous wave high needs to be broken at 0.92 for confirmation.
Even if this break continues to the upside, there is some traffic above the current price level. There are two trendlines marked in black that could be targeted by the bulls. There is also the psychological 0.93 area that has been sticky in the past.
The indicators are also looking pretty bullish at the moment too. The MACD histogram is in the green and it looks like the signal lines are above to follow and push over the zero level too. The Relative Strength Index is above 50 and there is still some space to move to the upside.
This downtrend is not over just yet. The market could start to make consecutive higher highs and higher lows from here and the confirmation of that will mark the change of trend.