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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.

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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.

DXY back above 2 year support

DXY back above 2 year support

 

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.

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