DOLLAR INDEX (DXY) LIKELY To Make A Push To Test 100.00 Level
The black lines on the weekly chart represents the concrete support and resistance levels drawn from the Monthly charts. Currently the price is at 97.00 mark and should this weekly candle or the next close convincingly above the 97.00 mark we are likely to see DXY push to the next resistance level that is located at around 100.00 level.
Although there is a bearish RSI divergence signal, fundamentally it seems the DXY will make a push to the upside to test 100.00 level keeping in mind that the channel should remain intact for this to happen.
So what does this for the other major USD related pairs? take a look at the EURUSD for example, the pair would likely fall to 1.09000 level in the coming months on the back of slowing eurozone economy. Adding to that the NZDUSD AND AUDUSD are likely to fall too. USDJPY and USDCHF the safehaven pairs will rise too as the technical indicates. So in short, the USD still has some breath left to make a rally upnorth to 100.00 level and after that we could see a pause or a move down.
This just represents my outlook on this pair and its not a trade signal. cheers
Although there is a bearish RSI divergence signal, fundamentally it seems the DXY will make a push to the upside to test 100.00 level keeping in mind that the channel should remain intact for this to happen.
So what does this for the other major USD related pairs? take a look at the EURUSD for example, the pair would likely fall to 1.09000 level in the coming months on the back of slowing eurozone economy. Adding to that the NZDUSD AND AUDUSD are likely to fall too. USDJPY and USDCHF the safehaven pairs will rise too as the technical indicates. So in short, the USD still has some breath left to make a rally upnorth to 100.00 level and after that we could see a pause or a move down.
This just represents my outlook on this pair and its not a trade signal. cheers
