weekly outlook DXY:
The price end the last week in a resistance zone respected before, with a strong daily candle, lets see what expect for the coming week.
In the fundamental side:
The must important event right now is the US-China phase one deal, the market stopped the consistency all time high momentum(DJX is an example of that situation) to evaluate seriously if there is going to be an agreement at 15/12/2019. At the same time we have in this month the christmas season, which one had move to upside the market 76% of the time since WWII end, so this could makes an turnoil in the market situation temporary. For the price of the dollar index this could mean for upside movements. There is another importan issue and is the misunderstanding between Trump and Powell, meanwhile Trump is expecting negative interest rates, Powell is not expecting for more cut rates in the middle term.
In the technical side:
The price made a double bottom in the lower part of the drawn channel, right now is in a resistance zone with a strong upside canddle ended on friday, the focus is right now in that zone, if it broke to the upside it will reach the next resistance zone, which one consiste in the 2.618 fibo extension of that double bottom movement. Especial watch to this area.
In the fundamental side:
The must important event right now is the US-China phase one deal, the market stopped the consistency all time high momentum(DJX is an example of that situation) to evaluate seriously if there is going to be an agreement at 15/12/2019. At the same time we have in this month the christmas season, which one had move to upside the market 76% of the time since WWII end, so this could makes an turnoil in the market situation temporary. For the price of the dollar index this could mean for upside movements. There is another importan issue and is the misunderstanding between Trump and Powell, meanwhile Trump is expecting negative interest rates, Powell is not expecting for more cut rates in the middle term.
In the technical side:
The price made a double bottom in the lower part of the drawn channel, right now is in a resistance zone with a strong upside canddle ended on friday, the focus is right now in that zone, if it broke to the upside it will reach the next resistance zone, which one consiste in the 2.618 fibo extension of that double bottom movement. Especial watch to this area.
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