#DXY :The monthly quick look towards trend and levels.The monthly picture for Dollar Index looks dizzy with moving average of 20 days is above the price which is bear mode and there are two blue levels levels which developed a range. Can be taken as support and resistance with break out strategy in mind.
Dollar-index
Dollar Index Preparing Next BreakdownThe past days the Dollar Index has been touching the lower range, it lackek bullish momentum to bounce back up cancelin the 5th wave. ADX shows that the bearish trend is still strong while the Stoch Rsi still indicates strong sell pressure. Because of this we can assume that the Dollar Index will break-out of the lower range next week.
Possible targets 98 and 97. Please note that on allot of Dollar pairs you see setups against the dollar, so this alligns with the bearish setup on the Dollar index.
Dollar Index Bullish SetupThe dollar index made a nice bounce back up from the lower green range. The Stoch Rsi indicator shows a possible bullish crossover and the Adx indicator shows a very weak bearish trend meaning that its more then likely the bulls will take over.
Because of this I see the dollar gaining some strenght this week and the dollar index attacking and breaking 100. It's most likely that this will be fueled alot by the Usd gaininst most of its strenght against the Cad and Jpy (see my Jpy chart).
If you're less bullish than I am on the Dollar then you should wait till the lower range breaks (around 99.40) and then sell the Usd
Dollar Index Daily ChartThe dollar index on the daily chart you can see that we are now in a key area where it is testing resistance from February and November 2015, due to recent results from the US raising interest rates this has caused concern for investors and we have seen a big sell off, I believe we may see a big sell off again after the pullback to 99.26 0.382 fib or even gain strength and break back through the 0.236 fib at 101.00 and then break resistance as shown in the chart.
Forecast dollar-index (DXY) for this weekDXY is in a bearish channel since dec 20.
Expect a breakout of the channel this week (move up).
After move up expect a quick surge down to take out the stops at 99.40
Or vise versa: take stops, then surge up. Update tomorrow.
Moves most probably on Wed (Fed Interest Rate Decision) and on Fri (NFP)