Dollar Bulls Remain on the Offensive
The dollar is proving relentless. Up +0.3% on the week, this marks the greenback’s ninth consecutive weekly gain. Technically, however, this is not a surprise.
The monthly timeframe’s long-term trend has been north since mid-2008, and the Q4 (2022) correction has likely been viewed as a dip-buying opportunity from monthly support at 99.67, as noted in previous research.
With USD bulls remaining on the offensive now—the monthly timeframe exhibits scope to approach resistance as far north as 109.33—and the daily timeframe making its way above resistance at 105.04 (now marked support) in the second half of last week, additional outperformance could be seen this week, targeting daily resistance at 105.76.
While the trend on both the monthly and daily timeframes supports higher prices this week, as does the Relative Strength Index (RSI) on the monthly timeframe (rebounding just north of the 50.00 centreline [positive momentum]), the daily timeframe’s RSI is displaying signs of negative divergence at overbought levels. Therefore, although higher levels are on the table this week, a correction to retest daily support from 105.04 (or even daily support at 104.42) is not out of the question (a move that may attract dip-buying in line with the underlying trend).
The monthly timeframe’s long-term trend has been north since mid-2008, and the Q4 (2022) correction has likely been viewed as a dip-buying opportunity from monthly support at 99.67, as noted in previous research.
With USD bulls remaining on the offensive now—the monthly timeframe exhibits scope to approach resistance as far north as 109.33—and the daily timeframe making its way above resistance at 105.04 (now marked support) in the second half of last week, additional outperformance could be seen this week, targeting daily resistance at 105.76.
While the trend on both the monthly and daily timeframes supports higher prices this week, as does the Relative Strength Index (RSI) on the monthly timeframe (rebounding just north of the 50.00 centreline [positive momentum]), the daily timeframe’s RSI is displaying signs of negative divergence at overbought levels. Therefore, although higher levels are on the table this week, a correction to retest daily support from 105.04 (or even daily support at 104.42) is not out of the question (a move that may attract dip-buying in line with the underlying trend).
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