US Dollar Index

[hevayastos]

IMPORTANT BREAKOUT

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A serious important manifestation is taking place in the Greenback; the index has successfully penetrated the structure key resistance zone. It became finally clear which role the Symmetrical Triangle will take; it has “reversed” the prior down-trend and, supposing that the breakout will be decisive, we can tell that the Greenback has built and successfully completed a Bottom Pattern. The RSI adds another piece to the bullish picture; the indicator also broke up-side over its own triangle, but which makes us, somehow, inclined totally to the Bullish scenarios is the new Range the RSI is taking now; it has bounced off the 40 line and this level worked previously as a Bull Support Range. In brief, the Index broke positively from a bottom pattern and the RSI is taking a new character… we haven’t, so far, any reason to be bearish on the security!

The USD is heading to the pattern’s up-side target @ 79.0, but the index may faces a selling pressure from the 200-day EMA @ 76.85. The 200-day EMA sometimes works as a major ceiling over prices and a decline may follow afterward, but we are betting on “Just a Pull Back” scenario to the Symmetrical Triangle and another rally to the pattern’s target.

Ramy Rashad, CMT