DX shows the USD bullish sentiment

30.10.2017 / 09:27

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Last week was highly positive for the dollar index DX, which measures the dollar's strength against a basket of other major currencies. This is primarily caused by the weakening of the EUR, which has more than 50% of the weighted value in the index. On the chart, we see that the Head & Shoulders is already activated, giving a clear signal of new bullish sentiments toward the US currency. However, the probability of correction is high and we can wait for a test of the neckline.

During the week, we are expecting a number of economic events that will be of great importance for the next direction of the dollar (FED meeting of interest rates on Wednesday; testimony of Facebook, Google and Twitter in the Congress on Russia's interference in US presidential elections, also on Wednesday; Non Farm Payrolls from the United States on Friday). This may cause some caution against new US dollar purchases, which would lead to the desired adjustment before new long positions in the US currency.

Trader Nikolay Georgiev

Varchev Traders

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DX shows the USD bullish sentiment

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