US Dollar Index Update June 2016 (D)
Created on Thursday, 09 June 2016 02:38
Written by Austin Galt
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.
US DOLLAR INDEX 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.