Dollar Index at key levels, probably short on USD

22.05.2018 / 19:38

Varchev Finance Dollar Index bearish expectations

Rating:

The Dollar Index has reached key levels of resistance that will prove decisive for the subsequent dollar development. DXY is trading with a decline of 0.1% today and 0.6% since early 2018. Looking at the big picture, it is clear that the main downward trend is broken, but Fibonacci's 38.2% correction and horizontal resistance are likely to negatively affect the index. 50 and 200SMA are still bruised.

DXY Price Action Price Action - Available pin bar (at the same time internal) at levels of resistance - negative for the price. Probable test of 200 - period.

Alternative scenario: If the price goes back over the resistance zone and stays there in several consecutive bars, the negative scenario will wreck and we're more likely to see an increase in the value of the dollar.

Source: Bloomberg Pro Terminal

Trader Petar Milanov

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Dollar Index at key levels, probably short on USD

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