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Technical analysis of USDX for December 13, 2017
Posted On 13 Dec 2017
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The Dollar index is making new highs. Market participants discount a rate hike and more positive news regarding the Dollar before tonight’s FOMC. However traders must be cautious as price is rising in an upward sloping wedge pattern.
Black lines – upward sloping wedge pattern
Red rectangle – support
Black line – target if support fails.
The Dollar index is in a bullish trend. Price is making higher highs and higher lows. Support is at 93.70-93.80. If this level is broken, I expect price to fall towards the cloud support and the 93.30 level.
Price has reached the weekly kijun-sen (yellow line indicator). This is very important resistance. Price has started the bounce off the 61.8% Fibonacci retracement at 92.50 which was our target. We can see a pull back from current levels but overall as long as we are above 93-92.50 I expect price to move towards 96-97.The material has been provided by InstaForex Company – www.instaforex.com
