DX1! (USD Index) looks set to bounce
The dollar index formed a small bullish candle on Monday, above the 200-day simple and exponential moving averages. Given the daily volume was relatively high compared with the candle, it could suggest a build up of buying pressure and potential cycle low. The daily RSI (2) was also oversold on Friday.
A bullish RSI divergence formed on the 4-hour RSI, and a false spike of the initial low also suggests momentum is shifting higher. Bulls could seek dips within Monday's range or enter live to seek a counter-trend move towards 104.50 (near a 38.2% Fib level).
A bullish RSI divergence formed on the 4-hour RSI, and a false spike of the initial low also suggests momentum is shifting higher. Bulls could seek dips within Monday's range or enter live to seek a counter-trend move towards 104.50 (near a 38.2% Fib level).
Note
Well, we had a bounce after US retail sales and import inflation beat expectations by a wide margin. But they were short lived as traders placed a greater emphasis on soft CPI from Canada and dovish comments from the Fed. We'll keep a watch, but may need to close out early unless there's further room for this to bounce higher.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.