US Dollar Index Analysis December 2016 (W)
Created on Thursday, 01 December 2016 00:19
Written by Austin Galt
The US Dollar Index has hit new highs so let’s update the weekly chart to see how things stand.
USD DOLLAR INDEX WEEKLY CHART
The 5 point broadening top now just needs the final point 5 high. I’m not expecting it imminently the pattern setup is there.
The Bollinger Bands show price hugging the upper band and should any correction occur at this stage I favour it finding support at the middle band.
The Fibonacci Fan shows the 50% angle providing solid support for the past six months. The recent low was bang on that angle again and price has now finally traded back above the 38.2% angle
The 100 weekly moving average (red) has also been a good support area.
The RSI is in oversold territory but there is still room to go higher.
The MACD indicator is bullish and doesn’t look in a hurry to go bearish.
Summing up, while there may be some small corrections I remain bullish for the time being.