The US dollar index, or DXY, found thin air above 100.00 last week, finishing the session sub 99.00, lower by 1.60%.
Technical pattern traders will note the sprightly pullback pencilled in the final leg of a double-top scenario off 100.88, with Friday tunnelling through the neckline of the formation (98.82). Within the field of technical analysis, this is considered pattern confirmation – confirmation that we may be headed for demand at 96.88/96.60. The take-profit target (purple rectangles) is measured by taking the distance between the highest peak in the configuration to the pattern’s trough and adding this value to the breakout point (the neckline).
Yet, in order to reach 96.88/96.60, sellers must contend with demand found at 98.18/98.65, the 200-day simple moving average (SMA), currently circulating around 98.33, and a 127.2% Fib ext. level at 97.04.
In addition to the above, the RSI momentum indicator wrapped up the week closing beneath 50.00, suggesting a bearish vibe.
Technical pattern traders will note the sprightly pullback pencilled in the final leg of a double-top scenario off 100.88, with Friday tunnelling through the neckline of the formation (98.82). Within the field of technical analysis, this is considered pattern confirmation – confirmation that we may be headed for demand at 96.88/96.60. The take-profit target (purple rectangles) is measured by taking the distance between the highest peak in the configuration to the pattern’s trough and adding this value to the breakout point (the neckline).
Yet, in order to reach 96.88/96.60, sellers must contend with demand found at 98.18/98.65, the 200-day simple moving average (SMA), currently circulating around 98.33, and a 127.2% Fib ext. level at 97.04.
In addition to the above, the RSI momentum indicator wrapped up the week closing beneath 50.00, suggesting a bearish vibe.