The dollar index closed last week at the highest level since June 2017, and at the beginning of the new week has continued its decisive growth. The index moved up the important resistance, from where it has turned to the decline earlier this year.
Also, RSI is growing, and still have some distance from the overbought area, leaving the potential for further dollar growth in the near future.
The short-term goal of growth may be the area of 97.60 (near the peaks of July 2016 and June 2017). More distant targets may be values near 100.0, as well as the area of multiyear highs at 103, where the index was at the end of 2016.
Great idea on DXY. In our case, we choose to go with a bullish bias. The break above yesterdays’ high would signal a strong bullish trend as well as a strong bullish channel. Both 200 and 50 day EMA has held strong as resistance before, as shown in the chart. The take profit level at 98.00, which is slightly higher than your 1st TP level, is a psychological level and it is also substantiated by a 61.8% Fibonacci retracement. Should this level be broken, we can took to take profits at a higher level of 100.0, which coincides with your 2nd TP level. The second take profit level is a strong psychological level and is also near the bullish channel resistance.
Pepperstone
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@Pepperstone, Please take a look at our idea and let us know what you think.