Was Dollar Index at 91 just a dream or a signal for 2018?
DXY bulls are happy as long as the index stays above this prominent 2-year support. Bears however have their signal. It is now a matter of time while the index does it’s usual zig zag before the inevitable happens. The signal for DXY to go lower in 2018 is already in place.
DXY is printing 93.44 right now. This is a level above prominent support between early 2015 to Q3 2017. DXY looks supported. Last quarter’s new 52-week low hitting 91.01 feels like a dream. Was that a false break?
For someone who is very bullish on DXY for whatever reason, the current level could be a good level to try out a low risk bet. Place stop loss on the other side of the fence. If you get stopped out, it’s a clear signal that you are wrong. If DXY goes up further, you have bragging rights to shout that you got the best entry point.
For Dollar bears however, that new 52-week low to a low of 91.01 in early September is an encouraging sign. A sign of bearish expansion that signals the start of a down trend that could come early 2018. That DXY is now at 93.44 is just a retracement only. Price never travel in straight lines.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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