US Dollar Index outlook: Dollar remains constructive, weekly close eyed for fresh signal
|US Dollar Index
The dollar index keeps overall firm tone and heading for the second straight weekly gain, with some important technical barriers being cracked this week.
However, situation on daily chart indicates that bulls might be running out of steam, after pivotal Fibo barrier at 98.20 (38.2% of 101.80/95.97) has been broken, but fresh upside attempts were repeatedly capped by falling 55DMA (98.56).
Daily technical studies are mixed as positive momentum is strong and daily Tenkan / Kijun-sen formed a bull cross, but the action is weighed by falling daily cloud.
Our focus will be on today’s closing, with weekly close above 98.20 Fibo level to confirm positive signal and keep bulls in play for renewed attempt through 55DMA and attack at next key obstacles at 98.84/88 (50% retracement / daily Ichimoku cloud bases).
Conversely, closing below 98.20 would generate initial bearish signal (bull-trap) and keep the downside vulnerable.
Res: 98.28; 98.56; 98.88; 99.35.
Sup: 98.03; 97.66; 97.28; 96.81.
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.