Looks like the USD index is going to test the 94.30 level
before going down further. The 94.30 level is crucial as
it is the 38.2% Fibo retracement level, as well as near the
exact bearish cross over level of the 50 and 200 SMA.
If price gets rejected at this level I suspect a re-test of the
pennant breakout level, which conveniently rests at the
78.6% Fibo retracement level, thus forming the projected
Bullish Gartley Pattern. Also, this is the third resistance
level of the pennant formation to be tested as support
Measuring the target objective from the 84.20 level by
using the measured move of XA, price reaches the precise
level of the initial bearish 50 and 200 SMA x-over level,
thus a close above here would catapult the USD to new
highs.
Alternately, if price closes above the 94.30 level, then I
suspect we will see a very bullish USD sooner than later.
This analysis is to be used as a road map should price
reverse at the highlighted significant levels of this
analysis.
Happy trading
before going down further. The 94.30 level is crucial as
it is the 38.2% Fibo retracement level, as well as near the
exact bearish cross over level of the 50 and 200 SMA.
If price gets rejected at this level I suspect a re-test of the
pennant breakout level, which conveniently rests at the
78.6% Fibo retracement level, thus forming the projected
Bullish Gartley Pattern. Also, this is the third resistance
level of the pennant formation to be tested as support
Measuring the target objective from the 84.20 level by
using the measured move of XA, price reaches the precise
level of the initial bearish 50 and 200 SMA x-over level,
thus a close above here would catapult the USD to new
highs.
Alternately, if price closes above the 94.30 level, then I
suspect we will see a very bullish USD sooner than later.
This analysis is to be used as a road map should price
reverse at the highlighted significant levels of this
analysis.
Happy trading