The Dollar Index has taken out the Weekly High at 101.75 mentioned in the last review. It is a signal to reach the area of the 103.1 level. This target is also being achieved by the potential AB=CD harmonic pattern. The 103 area is also the current Monthly upper Bollinger band.
Most of the passing week was bullish – till last Friday, where the strong resistance at 102-102.25 has left its mark on the chart.
Pay attention that last Friday’s bar, although leaving a gap down above, still has penetrated the upper Bollinger band, and closed above the 8 EMA short term sentiment line. This is sign of strength. It doesn’t mean though that the price is going to reverse up from here, and it is very likely to see testing of the Daily 20 and 50 SMAs , at the 101.15 area.
Taking out the Weekly Low at 100.68 (less likely to happen) is a clear sign of weakness, implies that the resistance at the 102 area is still holding.
Notice the clear crossing of the Monthly 50 and 200 SMAs, a long term bullish indication.
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.