The dollar index is potentially shifting momentum lower as Friday's price-action highlighted a series of bearish reversals. First off, the DXY had already recently struggled into the late March peak so bulls had been put on notice leading up to last week's decline. Coincidently, Friday's high rejected at former resistance then managed to close below the 10-day ma for the 4th straight day. And to top it off, a lower top was put in on daily charts as key trendline support from May was tested. Although we are entering one of the more quieter weeks of the summer ahead of Labor Day weekend (and the US jobs report is on Friday), dollar bulls may be forced to flee. If the 50-day MA fails to provide support look for a move the 91.50/77 region which includes a key Fib, the 100-day ma and a former higher low.
Look to Sell near 92.80 (near the 20-day Ma) OR Sell on a daily close below the 50-day Ma
1ST TARGET : 91.50
2ND TARGET : 89.77
Stop Loss Above Friday's high (93.18)
Look to Sell near 92.80 (near the 20-day Ma) OR Sell on a daily close below the 50-day Ma
1ST TARGET : 91.50
2ND TARGET : 89.77
Stop Loss Above Friday's high (93.18)
Comment:
LONG!!