Above is the daily chart of US Dollar Index (.DXY). Since May, the index has been rising from around 72.8 to as high as 76.
I have identified three down-trend lines using the same peak as starting point. Red line would be the ultimate resistant while green line is the ultimate support which I don't think the index would touch again.
The purple line is somewhere in between. Few days again DXY actually broke the purple line from below. Now this line has changed its role and it is supporting the index.
However, the small horizontal channel seems to be difficult to break out. We can see that this area has supported/resisted the index for a few times. We can expect a selling-force at this area.
It is still uncertain which one will win, the purple support or the horizontal resistance. Other indicators such as high RSI and high MACD suggest that the momentum of bullish USD should probably drop a bit. That means it should not have enough power to break out. I expect a consolidation of the index between the two levels.
No comments:
Post a Comment