Today, we have a quarterly review of Dollar Index(USDX) and anticipate the possible movement of USDX for this coming week.
Let’s begin by doing trendline analysis.
Daily Chart of USDX
USDX has been on a up trend move since Dec 2009 and there is a shift of trendline from Point A to Point C.
The shift of trendline from steeper to gentler slope suggest that the up trend is still valid.
Next, we look into one interesting observation for USDX.
Monthly Analysis
Monthly Breakout Analysis of USDX
As from the daily USDX chart above, since the upward move in Dec 2009, every monthly breakout has never break below the low of the breakout candle. However in Mar 2010, this pattern has been made invalid.
Currently we see in early Apr, USDX found support on the daily equidistant channel and is currently testing Feb’s High again.
Hence, there are 2 possible outcomes.
Bearish View
On 4 hourly chart, the bears would see a Head and Shoulders formation, finding a short opportunity.
Head and Shoulders on 4 Hourly Chart
Bullish View
Bulls on the other hand, might see a bull flag pattern on the same 4 hourly chart!
Bull Flag on 4 Hourly Chart of USDX
What should You do now?
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