Dollar Index: Weekly Price Action & Technical Analysis as on 05-MAR-2017
Sun Mar 05 2017
Gil Ecker (187 articles)

Dollar Index: Weekly Price Action & Technical Analysis as on 05-MAR-2017

The Dollar Index has taken out the Weekly High at 101.75 mentioned in the last review. It is a signal to reach the area of the 103.1 level. This target is also being achieved by the potential AB=CD harmonic pattern. The 103 area is also the current Monthly upper Bollinger band.

Most of the passing week was bullish – till last Friday, where the strong resistance at 102-102.25 has left its mark on the chart.

Pay attention that last Friday’s bar, although leaving a gap down above, still has penetrated the upper Bollinger band, and closed above the 8 EMA short term sentiment line. This is sign of strength. It doesn’t mean though that the price is going to reverse up from here, and it is very likely to see testing of the Daily 20 and 50 SMAs , at the 101.15 area.

Taking out the Weekly Low at 100.68 (less likely to happen) is a clear sign of weakness, implies that the resistance at the 102 area is still holding.

Notice the clear crossing of the Monthly 50 and 200 SMAs, a long term bullish indication.

 

 

Gil Ecker

Gil Ecker

Gil Ecker is Charting & Technical Analyst. He has more than 10 years experience of Global Stock Markets.

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