Thursday, August 25, 2016

Good pullback on the Dollar index

The Dollar index has been weakening since a couple of weeks ago, but it has found some good support on the 94.00 zone and bounces to the upside as shown on the daily chart. Janet Yellen’s speech at Jackson Hole and some comments by key FED members have supported the Dollar and that is why we see that the index has gained some bullish momentum and it accelerates towards the 200 day exponential moving average, around the 95.74 level, but it is possible for that zona to become resistance from where the Dollar may bounce again to the downside. Above the 200 day EMA, its next resistance could be the 96.59 level followed by the high at the 97.62 zone. To the downside, the 95.00 level may act as its first support, followed by the low at the 94.00 level.


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