Forex Morning Briefing
Commentary: USD ready for a run North? PE
The US Dollar (.DXY) Index marked a double bottom on 6 February 16 at 88.20, posting a 3-year low.
Note: The double bottom reversal is a Bullish pattern indicating further gains on the price action as the .DXY moved above major resistance at 90.45.
Currently, .DXY is marking a 7-week high near 90.75.
On the daily, short-term momentum indicators are also pointing to a continuation of the Bullish bias.
The Relative Strength Index (RSI) is well above 50, suggesting that the latest upswing may be running towards the overbought zone.
The MACD is rising above the trigger line and has entered the positive territory.
The 20-Day SMA (simple moving averages) is sloping to the upside, endorsing the Northside outlook.
Further gains should see the 91.00 handle acting as Key resistance taken from the low on 8 September 2017. A run above this mark could reinforce the Bullish structure in the short-term as it could take the price towards the descending trend line near 91.50, which has been holding over the last year.
The 23.6% Fibo retracement mark of the down-leg from 102.23 to 88.20 is standing near the Key mark.
Note: In the event of a continuation of the Soutside movement, the price could test support at 88.20, but the price needs to go through the 20 and 40-Day SMAs.
We wait, we see.
Have a terrific weekend.
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