Dollar Index: Weekly Price Action & Technical Analysis as on 27-NOV-2016

The Dollar Index made another HH HL Weekly bar, penetrating deeply the upper Bollinger band, but with a clear shortening of the thrust. The Monthly bar that is going to close by Wednesday, has already penetrated its upper Bollinger band considerably, a very bullish picture.

Pay attention that the last thrust up on last Wednesday and Thursday hasn’t reached the upper Bollinger band. Yet, closing all bars above a steep 8 EMA pointing upwards is a strong bullish momentum, and sure there is nothing to wait for as for the bearish side on the Daily and above timeframes.

A clear bullish target is right above, the 102.4 area, which is 1:1 magnitude target of the last Weekly bullish pinbar (the election’s week). So there is nothing to compromise in a bullish signal on the 4H and above, if it doesn’t point to that target.

Since the Dollar Index has already started the week with a thrust down below the last Daily swing Low at 100.71, a good bullish opportunity might rise from ending this Monday with a sign of strength (i.e. bullish pinbar) closing above the Daily 8 EMA, followed by a thrust above that pinbar, then a correction and a follow through. I would be certainly a good opportunity if this scenario is going to point on a 1:1 target closed to the Weekly bullish pinbar mentioned above, i.e. the 102.4 level (see chart).

 

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...

Discussion on Dollar Index: Weekly Price Action & Technical Analysis as on 27-NOV-2016