Slobodan Drvenica
Windsor Brokers
US Dollar Index
The dollar index edged higher after opening with gap higher on Monday, lifted by a significant shift in rhetorics pf President-elect Donald Trump, who turned his aims for weaker dollar to fight trade war, to threats to BRICS member countries of facing a 100% tariffs if create new or support another currency in attempts to replace dollar.
Fresh rise of dollar generated initial signal of reversal after a four-day pullback was contained rising channel support trendline, reinforced by daily Kijun-sen (at 105.60 zone), although more work at the upside is required to confirm signal.
Break of immediate resistances at 106.50 zone (Fibo 38.2% of 108.04/105.57 bear-leg / 10DMA) to firm near-term structure for attack at next pivot at 106.81 (50% retracement / daily Tenkan-sen), violation of which to shift near term focus to the upside and signal that corrective phase might be over.
Technical picture on daily chart is overall bullish, as 14-d momentum is in positive territory and turning up, stochastic is emerging from oversold zone and converging 55/200DMA’s are signaling possible formation of Golden Cross.
Near-term action is expected to remain biased higher while holding within month long bull-channel and pointing to steady uptrend.
Res: 106.50; 106.81; 107.10; 107.46.
Sup: 106.09; 105.60; 105.32; 105.00.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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