DXY daily analysis, strong resistance.
Updated
After yesterday’s dovish Draghi and strong retail data from US, we saw the dollar index sky rocket. After briefly retesting support yesterday, it shot up to test the 95 level again, a very strong resistance now. Today could be a day for retracement and some price action stabilizing.
Mario Draghi seems happy to with weak euro, perhaps in preparation for trade instability with Trump, to keep exports lower. And announcing a ‘no rate hike’ until mid-summer 2019.
Powell, on the other hand, indicated that strong economic growth in US now warrants 4 rate hikes this year and economic data definitely correlates with the statement.
DXY shows great technical levels.
50 SMA now crossed above the 200 SMA, another bullish signal.
Important to mention that on a weekly timeframe the 200 SMA is now exactly on 95, adding further strength to the level.
RSI in the buy area but not going into overbought zone. While there is divergence now, it is based on fundamental data.
Next level to look for is 96, which is also the 50% retracement level of the previous sell off.
Happy Trading!
Mario Draghi seems happy to with weak euro, perhaps in preparation for trade instability with Trump, to keep exports lower. And announcing a ‘no rate hike’ until mid-summer 2019.
Powell, on the other hand, indicated that strong economic growth in US now warrants 4 rate hikes this year and economic data definitely correlates with the statement.
DXY shows great technical levels.
50 SMA now crossed above the 200 SMA, another bullish signal.
Important to mention that on a weekly timeframe the 200 SMA is now exactly on 95, adding further strength to the level.
RSI in the buy area but not going into overbought zone. While there is divergence now, it is based on fundamental data.
Next level to look for is 96, which is also the 50% retracement level of the previous sell off.
Happy Trading!
Note
Note
Price makes new highs
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