Dollar Index probes again through key barriers after consolidation

Slobodan Drvenica Windsor Brokers

The dollar regained traction on Tuesday, after significant drop previous day and attacks again key barriers at $99.20/30 (Fibo 61.8% of 100.48/$97.40 descend / daily Ichimoku cloud top) where the action was repeatedly capped in past two sessions.

Persisting uncertainty from geopolitical side and recent shift in Fed policy outlook (rising inflation fuels expectations for rate hike in coming months) offer good support to the greenback.

The dollar advanced almost 0.5% until the mid-US session on Tuesday, on track to generate strong bullish signal on close above these barriers, as well as signal of bullish continuation, after a two-day pause.

Next targets lay at $99.75 (Fibo 76.4%) and $100 (psychological), while daily cloud top reverts to immediate support, followed by $98.94 (broken Fibo 50%) and $98.80 (higher base, reinforced by 55DMA).

Formation of bull-crosses of 10/20DMAs over 100/200DMA’s adds to bullish structure, along with strengthening positive momentum, though with slight warning from overbought Stochastic.

Res: 99.75; 100.00; 100.26; 100.48
Sup: 99.20; 98.80; 98.58; 98.35

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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