Forex Insight – USD Index

dollarking

Weekly

  • There are signs that the recent risk off event has cause strong demand for USD
  • USD in big demand as global commodity rout in Oil spurred a record high in USD/CAD
  • Growing sign of a possible exhaustion from the bulls
  • Weekly chart shows that price hit resistance and we cannot rule out a potential pullback
  • Technically, it also confluence with the RSI hitting the old resistance line where profit taking appears (see above chart)

Daily

  • RSI is entering overbought territory but we cannot rule out that price could continue to consolidate in this region before we see a move lower
  • Recent price action also hit the upper resistance line (see weekly chart)

4 hour

  • At the lower time frame, the bullish run continues and recent price action has formed a bullish channel
  • A break below will spur profit taking and the potential target will be the 4 hour 100 ma (rising red line)
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