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

Orlando Gutierrez Learn 2 Trade

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.

Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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