The U.S. Dollar Index (DXY) hit yesterday the 1D MA50 (blue trend-line) for the first time since February 23. Today's rebound simply shows why this MA level is considered such an important short/ medium-term Support. As long as it holds, expect a rebound to the upper Fibonacci extension levels of 2.0 and 2.5 that previously led to the May 13 High.
A weekly...
The U.S. Dollar Index (DXY) had a sudden stop to its rally yesterday following the 0.50% Rate Hike by the Fed, the strongest since 2000. This sudden stop took place at no other level than the 103.850 (just above actually) 5 year Resistance, which was formed by the January 2017 High. Failure to close above it on the 1W time-frame, can technically be seen as a...
This is an update to the core analysis I did on the U.S. Dollar Index (DXY) two weeks ago:
The price remains neutral within the wider consolidation of the green Rectangle after the peak on the 2.618 Fibonacci extension. As mentioned previously, the previous such consolidation broke downwards in order to confirm the 1D MA100 (green trend-line) yet again as a...
Pattern: Channel Down on 4H.
Signal: Sell as the price is approaching the 4H MA50, which has been rejecting every upside attempt since November 04. Also the RSI is at the top of its Channel Down and the MACD is repeating the November 10 - 13 sequence.
Target: 90.100 (-1.30% as per the November fractal).
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We take a closer look at the US Dollar Index and the makeup of currencies within the basket.
If you don't want to trade the Individual US Dollar currency pairs we can sell the Index as the Dollar continues to weaken across the currency pairs that make up the Index.
We look at entry price strategies below a key technical support level 92.00
Pattern: Multi-year Rectangle on the 1W chart.
Signal: Bullish as the price has bounced off of the 0.91800 Support and based on the 2018 fractal has considerable upside.
Target: Basic target is 1.0000 and if 1.002500 breaks Extension Target can be 1.0200.
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Pattern: Fibonacci retracement.
Signal: Bullish either on the 0.618 or 0.786 level based on the previous similar sequences.
Target: 104.50 (slightly below the -0.236).
