Dollar heading higher as Trumpet blows hard… eyeing 2020 elections!!

Dollar heading higher as Trumpet blows hard… eyeing 2020 elections!!

Jaya Maheshwari
17 Jul 2019 05:27 PM
Technically, the Dollar Index graph is in an uptrend channel but with the formation of an inverted head and shoulder pattern as marked in blue ellipse, the DXY is heading further upwards. The pattern’s shoulders are at 96.40 while head is the low of 95.36. The current level is around the neck line and a break past it towards 98.37 seems to be its path over the next few weeks. The technical momentum RSI has already moved up after touching 30, that’s when the DXY was at the tip of the head. Initially the bigger resistance was broken when the non-farm payrolls data printed at 224k much higher than expected (160k). It made the index see the high of 97.44 that day. Yesterday, this move was further supported by the month on month US Retail sales which grew at 0.4 percent in June. Now the immediate resistance is seen at the horizontal line at 97.70 after which it should aim to test the 2019 high of 98.37. The immediate support is seen at 96.40.

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