DXY Dollar Index Technical Overview
I will not dive into fundamentals in this analysis as they are the subject of my next DXY forecast which I will publish in the first week of 2019.
DXY recovered its losses on Friday and ended the week at 96.95 just below the 97.05 resistance.
Let us put the facts at the table:
1. DXY is trading in a Bullish Market.
2. Trend reversal level may be set as “firm closings below 93.85”
3. The key resistance resides at 97.70
Bullish Continuation Scenario:
- A huge “cup and handle” formation will start to work again if the Index closes above 97.05 resistance.
- Firm closing above 97.05 will carry the Index toward 97.70.
- Breakout and closing above 97.70 would trigger the bullish move. Targets are 99.20, 99.70, 100.40.The ultimate target of the formation 102.50.
- As seen on the H4 Chart, DXY was printing an ascending triangle – a bullish continuation pattern – . However, the pattern has been busted by the false breakout of the baseline.
Bearish Reversal Scenario
- The midterm bearish reversal scenario could be validated by the breakout of the trendline at 96.50. The first target will be 96.20.
- Firm closings below 96.20 would trigger the bearish move. The target of the Index will be 95.70, 95.50 and 95.00.
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money
DXY Dollar Index: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.