Due to Europe debt concern (this time Spain), EUR has plunged greatly. Relatively, US Dollar Index gained. Today we are going to investigate the chart of DXY.
Above is the daily chart of USD Index (.DXY). With the concerns yesterday, we could see that the index broke the green down-trend line (the upper one), but the break was so weak and its rise wasn't considered a break out.
This might be due to the purple pitchfork. DXY dropped below the fork in last June, and is currently testing the bottom line of the fork. This could be a resistance to DXY.
Also, RSI is reaching a very high level. The index has probably lost its momentum to go any further, and it should start slumping back below the upper green line.
The support level is at around 74.5, which is the lower green up-trend line. After that, we have to see whether the debt concern is that bad which leads to another big surge of DXY.
No comments:
Post a Comment