Weekly Focus on the US Dollar Index

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Weekly Focus on the US Dollar Index

#1
xysoom

Posted 24 December 2020 - 08:49 AM

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Weekly Focus on the US Dollar Index

The US dollar showed its financial Strength last week, consequently ending a two-week losing streak.To get more news about WikiFX, you can visit wikifx official website.
　　Adding 0.7 percent, buyers navigated from daily demand at 92.71/93.14 at the beginning of the week and eventually revisited a daily trendline formation (102.99), a level linked with a small area of daily supply at 94.08/93.84. Traders will also note the RSI oscillator is seen closing in on trendline resistance (prior support).

　　Bringing down the aforesaid resistances this week establishes a basis for buyers to target daily resistance from 94.65 and even the longer-term daily resistance level at 95.83.
　　With respect to the 200-day simple moving average, circling 96.84, the dynamic value continues to curve lower, two years after mostly drifting higher.
　　In the context of trend, previous research highlighted the following:
　　· A large-scale pullback since March 2008 from 70.70 is seen on the monthly timeframe (primary trend is considered south).
　　· The daily timeframes immediate trend has also faced lower since March 2020. Breaking the noted resistances this week, however, suggests a deeper pullback could be in the offing.August, as you can see, toppled supply from 1.1857/1.1352 and extended space north of long-term trendline resistance (1.6038), arguing additional upside may eventually be on the horizon, targeting trendline resistance (prior support – 1.1641).
　　Before seeking higher territory, a dip to the recently penetrated trendline resistance (support) could materialise, backed by Septembers monthly outside bearish reversal candle that snapped a four-month winning streak.Supply at 1.1872/1.1818, a rally-base-drop configuration, in addition to a trendline resistance (prior support – 1.1695), has proven a tough nut to crack.
　　Interestingly, though, before sellers can reach for support at 1.1553 (arranged just under 1.1612 [September 25 low]), trendline support (prior resistance – 1.2011) must be dethroned. Should buyers take charge here, price taking on current supply and zeroing in on another layer of supply at 1.2012/1.1937 is also a possible scenario.
　　· The trend on the daily timeframe has displayed a bullish vibe since March.
　　· The RSI oscillator recently dipped from peaks around 58.00 and is on track to test trendline support (prior resistance).