Friday, October 21, 2016

Is the Dollar ready for a correction?

The Dollar index has been rallying for the last three weeks as shown on the weekly chart. The Dollar has been supported by the probability of seeing an interest rate hike by December. The strong rally on the Dollar has taken it to over-bought territory and it is possible to see a bearish bounce from the current level. The 95.59 zone has acted as resistance in the past and it could act once again as resistance. But a breakout above the 98.59 level could take the index to the 99.88 level or the high above the 100.62 level. To the downside, the first support of the index is the 98.00 level, from there the next support is the 55 day exponential moving average, around the 95.85 level. The last supports levels are the 94.00, the 93.00 and the 91.88 level.


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