DXY: Strong volatility, bigger picture under microscope!

  • by Amir El Araby
  • September 7, 2018, 1:34 AM
 265       24      

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. 

Amir El Araby

Financial advisor with 20 years’ experience in the technical analysis studies for FOREX, Commodities, and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of the Egyptian Society of Technical Analysts (ESTA)

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