Wednesday, July 20, 2016
Technical Analysis – Dollar index turned bullish after breakout of Pennant pattern
Dollar index has stalled its recent
bearish trend that started since 12 December 2015 from the peak of 100.66 and
recovered more than 5%. The recent recovery has started since 3 May 2016 from
the low 91.88 towards 96.86.
After that dollar index consolidated
in a range between 96.86 and 95.50, this consolidation gave a shape of a
pennant pattern on the daily chart, which is signaling for bullishness in
dollar index.
A break out the pennant is
indicating for the bullish rally towards its first immediate resistance 98.50,
after that sustain trade above this level probability could arise for the next
level of 99.89 levels that will coincide with its previous swing high.
On the downside, immediate
resistance is seen at 98.50 and sustain trade below only will create
probability for correction towards 94.20-93.65.
