Above is the 4-H chart of US Dollar Index. While the stock markets are plunging due to the crazy rise in bond yields in Europe, we can see that the US Dollar is surging quite a bit.
It breaks its pennant trend (shown in orange) and starts a new trend movement. The purple Pitchfork continues to be limiting the index's volatility.
The fibaonacci projection was drawn using the starting high and low of the orange pennant. The resistant at 38.2% shows that this projection is pretty accurate.
Therefore, we can expect the index to move up to 80. Short-term support is at around 79. These are the levels to be aware of.
According to the chart, it looks bullish due to the breakout, and I expect that it would go up to 80 in next few trading days.
Good luck.
No comments:
Post a Comment