Trade Alert
The US dollar index is on a slide today, but will it break below the short-term upside support line, or is the move lower just a temporary correction?
Even if DXY remains slightly below the upside line, for us to get comfortable with lower levels, we would need to wait for a clear break below the 96.55 area, marked by yesterday's low. This is when we could aim for a test of the 96.37 obstacle, a break of which may drive the index towards the lows around the 20th of November.
But, if the upside line holds, we could see DXY bouncing back up and aiming for the 97.10 level, which was near yesterday's high. But only on the break of that level we will start considering further higher levels.
Don't forget your SL.
The US dollar index is on a slide today, but will it break below the short-term upside support line, or is the move lower just a temporary correction?
Even if DXY remains slightly below the upside line, for us to get comfortable with lower levels, we would need to wait for a clear break below the 96.55 area, marked by yesterday's low. This is when we could aim for a test of the 96.37 obstacle, a break of which may drive the index towards the lows around the 20th of November.
But, if the upside line holds, we could see DXY bouncing back up and aiming for the 97.10 level, which was near yesterday's high. But only on the break of that level we will start considering further higher levels.
Don't forget your SL.