USDX (US Dollar index) Analysis
- The current dollar index weekly range (154) is already 102% of the average over 26 weeks which is 150 pips.
- The USDX 38.2% Fibonacci retrace of 88.7 > 72.69 is located at 78.79 and aligned with the FE 61.8 of the Fibonacci expansion 73.52 > 77.69 > 76.06. This resistance area has capped price during recent trading sessions and seen 3 consecutive lower closes on the daily chart after the confluence area was hit.
- Price is now moving to the upside and looking to resume the bullish trend, which started at the end of August, with the daily candle looking to close at the higher end of the days range.
- A break above the resistance range highs could potentially see an attempt on the 80.00 psychological round number. This would be inline with the near term USDX trend.
- Any failure to sustain a move higher could see price test the 76.77 pivot support level; further to this the 76.00 support is seen as key and a favoured area to look for bullish price action.
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