DXY: Strong volatility, bigger picture under microscope!

  • by Amir El Araby
  • September 7, 2018, 1:34 AM
 320       61      

The U.S. dollar index has shown strong volatility during the previous period, forcing us to have a look at the long-term charts.

The index has slowed down its upside wave started around 88.45 where it capped again by 50% Fibonacci from 121.13 to 70.52 as seen on the monthly graph below.

Additionally, we see how the momentum indicator -RSI- has been resisted with a falling trend line in the 50.00 regions.

Moving to the weekly chart, we see two additional negative signals as follows:

-        The index has achieved 2 negative closing below SMA200.

-        A harmonic formation is drawn with a clear oversold signal on Stochastic.

In result, we do believe that the index may show bearish actions over upcoming periods, while a break below 94.40 will accelerate.

On the upside, bears should be protected by 97.00 marks. 

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