The NFP data has come up with flying colors.
Technically, the counter has broken its resistive trendline which can be construed as an inverse head and shoulder pattern.
Hence, we expect the index to move all guns blazing to the resistance 98.30 and there is a good chance for a new high to be unravelled for the week.
Dollar Index will be moving forward to the levels of 99. One need to be aware. Before making any shorting in major pairs.
With an SL for 97.54 and the target of 98.70++
The Index has broken the trendline which paved the bull rally for the past 10 days.
It is consolidating below the trendline and there is a slight chance for a pull back rally to test the broken trendline.
However, the break could trigger a profit booking rally and the index is set for a bearish move for now.
Dollar Index has build a strong support base and started breaking major resistance. It is now moving ahead towards the target of
1-- 97.48
2 -- 98
3 -- 99.21
And 4 -- 102 (Major Resistance).
With the support of 1. -- 97.14(Closing basis)
2. -- 96.50
3. --- 95.70
Be cautious with the trade in major pairs. Lots of factor might impact the DXY so don't let it to...
What i see, DXY it retracing for the next BIg move.
So i feel best time to enter SELL on XAUUSD at 1224-1226
USDCAD BUY
AUDUSD SELL
NZDUSD SELL
EURUSD SELL
GBPUSD SELL
1) Dollar index looks strong, got pull back from support
2) Increasing oil and gas export and china CAD shall increase dollar strength
3) Interest rate hike in dec shall also increase dollar impacting emerging market currency
The U.S. Dollar Index tracks the strength of the dollar against a basket of major currencies. (DXY) originally was developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies. U.S. Dollar Index goes up when the U.S. dollar gains "strength" (value), compared to other currencies. The following six currencies are used to calculate the index:
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DXY (Derived Data)
