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.
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Political uncertainty continue keeping dollar under pressure.
ReplyDeleteSeems like it will keep pushing lower due to political tensions in the US.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThat depends on how long the political turmoil in the USA will continue.
ReplyDeleteI think it will keep falling.
ReplyDeleteIt's still bearish.
ReplyDeleteExcellent information to keep in mind.
ReplyDelete