Dollar Index Technical Update
- The USD-X has attempted to break beneath the pevious swing low and subsequently gained support at the confluence 78.20 area which has 38.2 ret and a FE61.8 expansions aligned with structure.
- The bullish engulfing candle which followed, after a failure to sustain the break lower, gave good follow through after an initial hesitation doji day.
- EURUSD price action is pointing towards further potential downside if the 1.3171 area can be broken below on a daily basis. This would see associated upside on the index.
- This move higher has us looking towards potential resistance with price now close to the 38.2% retrace of the major swing lower around 79.50. This wave began mid January through to early this week and has price pivot zone interaction.
- A failure to hold below the above technical resistance level would see the 80.00 psychological round number and the 50% retrace of the aforementioned wave come into play.
