USD Index Outlook: Multiple rejections at key barrier warn of pullback

Slobodan Drvenica Windsor Brokers

US DOLLAR INDEX

The dollar index eases on Wednesday after being congested under key Fibo barrier at 97.26 (38.2% of 99.29/96.00 fall) for a few days.
Three consecutive Dojis and four rejections at 97.26 resistance increase risk of stall of recovery rally from 96.00 (31 Dec low). Momentum,
RSI and stochastic are heading south on daily chart support negative near-term scenario. Fresh bears need to clear supports at 96.85/80 (converged 10/20DMA's/Fibo 38.2% of 96.00/97.28) to generate bearish signal for extended pullback towards 96.49 (Fibo 61.8%).
Failure to break below 96.85/80 pivots would keep near-term bias with bulls and hopes alive for renewed attack at 97.26 and 97.43 (200DMA).

Res: 97.16; 97.26; 97.43; 97.64
Sup: 96.80; 96.64; 96.49; 96.21

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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