Dollar Index: Weekly Price Action & Technical Analysis as on 14-MAY-2017

The Dollar Index was very misleading over the passing week, mainly because of the gap down it opened with, and the strong thrust up that on the Daily timeframe created a Megaphone pattern eventually.

In the previous review I mentioned that taking out the Weekly Low is a bearish signal. In case the market opens with a gap down as it did and within the same bar continues to take out the last Daily High (in this case the High of the previous Friday), any bearish position based on the Weekly Idea should have been closed at that moment. It was a clear sign of strength advising not to be bearish on the Weekly scale.

Notice that the open gap above (99.34-99.88) has not been closed completely while the market has reversed down on the Daily, a clear sign of weakness. There is a small open gap below (98.936-98.96) that probably won’t make things easy for the coming week either, and another attempt to close the open gap from above can emerge, or testing of the 99.5-99.7 area.

The general sentiment on the midterm is still bearish, with target at the 96.2 area level, and the passing week looks currently as a big shakeout (that may not be over yet). The current price action indicates that we are going to spend more time at this megaphone area and the current Monthly bar of May can close eventually as a small range bar compared to other Monthly bars lately. A rapid momentum move down to reach 96.2 is much less expected in the current circumstances.

Dollar Index, various timeframes (at the courtesy of



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 14-MAY-2017

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 strictly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Members are requested to flag any violations to keep Forum Clean.
Note: If old messages appear, it is due to a software bug. Please click the 'Sort By Newest' Button on below right, then first select Oldest & after that Newest. Latest Message will appear. Sorry for this.