Dollar Index: Weekly Price Action & Technical Analysis as on 16-OCT-2016

It took only one day of inside bar consolidation (last Monday) before the Weekly High was taken out, drifting the price to take out the July’s High at 97.62 as well.

Taking out the High of 97.62 triggers a bullish signal with a target above the Yearly range (above 100.785). I’d be very doubt to see this move taking place in the current year, as the yearly price action suggest that the major bullish wave should most likely continue not before the end of 2016.

The realistic target currently is the bullish signal to reach the 98.68 level – triggered on the Brexit spike (by taking out the High of 95.96). From the price action point of view, there is a good chance to reach this target before the month of October ends. An important Fibonacci retracement level lies right above that target, the 78.6% retracement level at 98.73, since the major decline that started at December 2015.

Currently there is no point to look for a bearish opportunity, as for such scenario we need at least an inside bearish Weekly bar as a contra bar for the current bullish momentum.

On the other side, there is currently a clear trigger to go long – above the last attempt down made last Thursday, – in other words, buy a new Weekly High. The target is the same target mentioned above, 98.68-98-72. Resistance levels on the way up lie mostly at 98.415-98.5.

Above that target level there is a very clear and strong resistance at 99.25-99.35, and 99.7-99.755.

Dollar Index, Daily chart (at the courtesy of prorealtime.com)

Dollar Index, Daily chart (at the courtesy of prorealtime.com)

 

Disclaimer: Anyone who takes action by this article does it at his own risk and understanding, and the writer won’t have any liability for any damages caused by this action.

 

Gil Ecker

[email protected]

Market Analyst and trader

You may also like...

Rules of Discussion on Dollar Index: Weekly Price Action & Technical Analysis as on 16-OCT-2016

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Memebrs are requeuested to flag any violations to keep Forum Clean