Richard Perry
Independent Analyst
The outlook for the dollar bulls continues to improve, to an extent at which the huge 8 year high at 122.02 has now been posted today. The set-up on the chart is increasingly strong, posting six positive sessions in the past seven (I would play down the impact of an arguable “doji” candle yesterday on the grounds of thin trading amidst the public holiday). Momentum indicators remain strong and there is little reason to suspect now that there will not be serious pressure to the upside if there is a closing confirmation above 122.02 today. The intraday hourly chart shows a strong set up with corrections being bought into and old breakout levels being used as the basis of support for the next run higher. This means that initial support comes in at 121.40 whilst hourly momentum is also very strong. There is no real sign on either the hourly or daily timeframe of any corrective indication so there is no real reason to not keep buying. The upside is now open towards the 2007 peaks of 123.65 and 124.15.
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