Negative signals for the dollar with the start of the New Year

  • by Ihab Maximous
  • January 2, 2019, 11:21 AM
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The dollar Index moved in a bullish direction that lasted for two months, from September 21 until November 21, and then turned the bullish trend into a fluctuating trend forming a rectangular pattern that has continued to this day. In this article, we will present our view of the USD index in the coming days.

The dollar Index rose strongly during 2018 and most probably it has not finished its gains. We may see strong levels down in the long term, but an upside correction from these levels can not be ruled out, as the RSI is moving in a clear bearish direction, indicating a negative price break (on the weekly charts) and giving a sign that the USD is likely to fall at any moment.

The index is moving in a volatile direction and has reached the bottom of the rectangle pattern, which, if breached, would change the trend into bearish.

We expect a strong closing below the 96.00 level today paving the way for selling with targets near 93.00 or 300 pips down.

Ihab Maximous

A stock market expert and technical analyst based on Elliott waves. He is the first to receive a certified Elliott wave Analyst certificate from Elliot Wave International website, a member of the American Association of Capital Market Experts. He is a member of the Egyptian Association of Analytical Analysts.

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