Friday, May 19, 2017

Will the Dollar continue falling?

The Dollar Index is still very weak, the US currency continues under pressure due to the political risk that is being felt in the United States and it may continue falling during next week. On the daily chart of the Dollar Index we can see that after breaking below the 98.00 level, the bearish momentum accelerated and index came to the 97.00 zone where it is trying to stall a little bit its drop. However, it is possible that the Index may break below the 97.00 level to go and visit the 96.00 level, due to the fact that the 55 day moving average (purple line) has a good angle of inclination to the downside and it may cross below the 200 day exponential moving average (blue line) at the 99.14 level. If the 55 day EMA crosses below the 200 day EMA then if will be confirming a “death cross” pattern, which has bearish implications in the midterm. If the price does not break below the 97.00 zone, then it may stay consolidated between the 97.00 and the 98.00 levels, but to see a trend change on the index, the price must break above the 98.00 level.


7 comments:

  1. Political uncertainty continue keeping dollar under pressure.

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  2. Seems like it will keep pushing lower due to political tensions in the US.

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  3. This comment has been removed by the author.

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  4. That depends on how long the political turmoil in the USA will continue.

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  5. Excellent information to keep in mind.

    ReplyDelete

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