dollar index is on the verge of breakout , strength against all currencies has been observed which suggest we can see a significant retracement in usdinr chart (weak inr ).if we correlate things and sumup we might see a correction in nifty so trade cautiously with strict sl.
My projection for the DXY on the hourly chart:
Expecting the DXY to go down from the current levels i.e. 101.48 or from 101.57
It can go down till 100.63, retrace back a little from there and then head down to 100.08 zones.
Strong resistance at top with the completion of a ABCD Pattern & Bearish Butterfly pattern along the same zone.
But, CPI and Yellen...
Its amazing experience to look at Dollar on monthly chart( its first time i looked Monthly chart on Dollar).
All time high of 162
Resistance level 102, 120
Support level :100 ( great physiological No). but i think it will dive below that and hunt for stoploss.
next support level will be 92
as we can see the bearish divergence there and bearish engulfing pattern and doji in the overbought condition there this is giving a bearish outlook there
Since Nov 30 dollar index has moved up where as it's 25 day ROC went down. Looking at the chart it seems serious divergence & $ can correct from here against basket of other currencies.
I prefer going long on Euro particular from here.
ROC(25 days) shows that up move in the dollar is about to come to an end (at least for next few days) so shorting dollar against Japanese Yen & Euro looks good trade here.
