US Dollar Index Update June 2016 (D)

The US Dollar Index hit a low yesterday at 93.41 and has moved up from that level today so let’s review daily chart.


We can see the recent correction by price and I believe yesterday’s low ends wave B of an ABC corrective formation.
The Bollinger Bands show price pushing into the low band and I expect a big bounce back now.
I have added Fibonacci retracement levels of the move up into the wave A high with the wave B low was bang on support from the 61.8% level.
I have drawn a Fibonacci Fan from the high to low. This shows the wave A low nudging above the 50% angle with the wave B low nudging marginally under the 38.2% angle. I am targeting the wave C high to be around resistance from the 76.4% angle. Let’s see.
I have added moving averages with time periods of 100 (red) and 200 (black) and these are now in bearish formation which adds confidence that this current move higher is a bear rally only.
The RSI has dipped into oversold territory while the MACD indicator is bearish although the averages have diverged a bit so price turning back up now is really no surprise.


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