It’s about time for a little bit of retracement, consolidation for the DXY. After all markets don’t travel in a straight line – they usually move in zigzags. Besides, there was previously a resistance here so this level might over some support. Price action at the moment with the kink there appears to agree.
DXY has now fallen out 3-year range with new 52-week low with 13-week and 26-week exponential moving average acting as resistance. This setup has happened before, we can see from this example that happened late-2002.
Key observations of Wilmar: Price rebounded from 6-year support twice in 2017. Printed new 52-week highs in 2016 and 2017. Last week bullish expansion over last 6 weeks of 2017.
Based on 5 simple technical analysis concepts, these two DXY weekly charts from mid-2014 to present show a Dollar Index that terminated previous uptrend.
A look at Dollar Index DXY, EURUSD, AUDUSD, NZDUSD, GBPUSD, WTI and XAUUSD. A common theme – a turning point could be showing up soon seeing how these pairs might be at support.
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.
Look at WTI, XAUUSD support and resistance levels, trends. Week 37 2017 latest charts, setups and price action. Also GBPNZD, EURUSD, USDJPY.