Time for a USD Pullback
|-
The $DXY has been soaring for the entire month
-
We have hit a major zone of resistance
-
Short term bull targets achieved
The US Dollar Index ($DXY) has bean soaring for the entire month of February breaking with last week´s highs at 96.70 hittits short term bull targets at 97.10. This is not only a previous structure high/base but it´s also the 76.40% of the entire move down (A to B move) and the 127.2% retracement of the last move down (C to D).
This si extremely important because old bulls are expecting this pullback as catalyst of the next bullish push and a retest/break of the 1326.00 level. The USDCAD is bouncing from the 78.6% and a test of the descending trendline which points at a very short term USD weaknes.
We do see more upside on the USD but for a push to test December highs at 97.70 we could use a pullback to previous structure high (C point) at around 96.50 for more bulls to jump in.
In any case we remain bullish in the USD for the mid term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.