Dollar Index Snaps 11-Week Winning Streak; Dip Buying?
The Dollar Index finished the first full week of October eking out marginal losses, falling -0.1% and snapping an 11-week winning streak.
Technically speaking, though, the trend on both the monthly and daily timeframes continues to favour buying despite the decline seen in the second half of last week. Momentum also still leans in favour of buyers. The Relative Strength Index (RSI) shows the index is demonstrating signs of bottoming ahead of the 50.00 centreline on the monthly chart, while the RSI on the daily chart has forged negative divergence out of overbought space. Despite a mixed vibe here, considering the uptrend and the monthly RSI generally taking precedence over lower timeframes, the pendulum is swinging in favour of USD bulls.
The monthly chart demonstrates scope to push as far north as resistance from 109.33, following July’s rebound from support at 99.67. The daily chart, on the other hand, shines the technical spotlight towards resistance at 107.61, with neighbouring support at 105.76 to perhaps demand attention this week.
What does this mean for the buck going forward?
Daily support at 105.76 is worthy of this week's watchlist, a base that could attract dip-buying in light of the technical factors aired above.
Technically speaking, though, the trend on both the monthly and daily timeframes continues to favour buying despite the decline seen in the second half of last week. Momentum also still leans in favour of buyers. The Relative Strength Index (RSI) shows the index is demonstrating signs of bottoming ahead of the 50.00 centreline on the monthly chart, while the RSI on the daily chart has forged negative divergence out of overbought space. Despite a mixed vibe here, considering the uptrend and the monthly RSI generally taking precedence over lower timeframes, the pendulum is swinging in favour of USD bulls.
The monthly chart demonstrates scope to push as far north as resistance from 109.33, following July’s rebound from support at 99.67. The daily chart, on the other hand, shines the technical spotlight towards resistance at 107.61, with neighbouring support at 105.76 to perhaps demand attention this week.
What does this mean for the buck going forward?
Daily support at 105.76 is worthy of this week's watchlist, a base that could attract dip-buying in light of the technical factors aired above.
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