The
US Dollar has been rallying on the back of the Turkish crisis which has been escalating,
putting pressure mainly on the Euro, which is more than 50% part of the Dollar
Index. The Turkish crisis has also put pressure on other main currencies and
emerging market currencies. On the daily chart of the Dollar index we can see
that the instrument broke above the 96.00 level, but the last daily candle is
in the shape of a doji. The doji is a Japanese candlestick pattern of
indecision. When a doji appears at the end of a trend, it may be telling us
that the trend is losing steam or a trend reversal is about to happen.
Therefore, the index may pull back below the 96.00 level in a profit taking
correction and maybe visit the 95.00 level. On the other hand, if the crisis
continues in Turkey, the Dollar may keep rallying and it may reach the 97.00
level, which could at as resistance.
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I'll keep your assessment in mind.
ReplyDeleteIt will likely continue rising.
ReplyDeleteThanks for the relevant information.
ReplyDeleteGood post!
ReplyDelete