The Dollar index is in a short-term consolidation phase. There is a lot of indecision among traders and this is very clearly shown in the weekly chart, where the prices trade sideways creating doji candle patterns. Traders need to be very patient and wait for the important levels to produce the signals.
The Dollar index is moving sideways in the last few sessions between 101.80 and 100.40. Short-term support is at 100.60. If that level is broken then we have many chances that the 99.25 level neckline support will be tested. If resistance at 101.80 is broken upward we should expect a swift move towards 103 to be seen and eventually new highs over the coming months.
The Dollar index is currently trading below the weekly tenkan-sen (red line indicator). The price got rejected twice at the tenkan-sen and this is a bearish sign. The oscillators are downward sloping and this implies that we could see more selling pressures over the next few weeks. However, if the bulls manage to break above the tenkan-sen and the 101.80 level, the bulls will be more optimistic and we should see 103 price level fast. On a break below 100.40 on a weekly basis we should expect the Dollar index to push towards 99.25 where the previous important weekly low is found.
The material has been provided by InstaForex Company - www.instaforex.com
No comments:
Post a Comment