The US Dollar Index (DXY) gains 0.36%, trading at 103.888, maintaining a rally for three days and surpassing the 200-day EMA. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• The US Dollar Index (DXY) gains 0.36%, trading at 103.888, maintaining a rally for three days and surpassing the 200-day EMA.
• DXY must hit 105.883 YTD high to confirm the double-bottom pattern, surpassing multiple resistances.
• Potential risks lie beneath the 200-day EMA; breaking it may lead DXY toward 100-day EMA at 103.212 and May 22’s 102.964 low.

The pair currently trades last at 103.91.

The previous day high was 103.65 while the previous day low was 103.16. The daily 38.2% Fib levels comes at 103.46, expected to provide support. Similarly, the daily 61.8% fib level is at 103.35, expected to provide support.

The US Dollar Index (DXY), which measures a basket of six currencies against the US Dollar (USD), rallies for three straight days, reclaims the 200-day Exponential Moving Average (EMA) at 103.743 and is also exchanging hands above the 2017 yearly high of 103.820. At the time of writing, the DXY is trading hands at 103.888, gaining 0.36%, with bulls eyeing the 104.000 mark.

From a daily chart perspective, the US Dollar Index is neutral to bullish biased, but it could cement its bias as bullish once the DXY achieves a decisive break above the 200-day EMA. It should be said that the double-bottom that emerged in the weekly chart, as I wrote in a news article on April 14, US Dollar Index: Could a double bottom at the weekly chart drive the DXY to 111.000? remains in play.

However, to validate the double-bottom chart pattern, the DXY must get to the year-to-date (YTD) high of 105.883, though the greenback needs to hurdle some resistance levels on its way up. Meanwhile, the Relative Strength Index (RSI) indicator is in bullish territory, with some room before hitting overbought levels, while the 3-day Rate of Change (RoC) suggests that buyers are gathering momentum.

If the DXY reclaims 104.000, the next resistance level to test would be the March 15 daily high of 105.103. Break above, and the DXY will have a clear run toward testing an eight-month-old resistance trendline around the 105.300-600 area, ahead of piercing the YTD high at 105.883

Downside risks for the DXY remain below the 200-day EMA, which could send the greenback sliding towards the 100-day EMA at 103.212. A clear break will send the DXY toward the May 22 swing low of 102.964, slightly below the 103.000 mark.

Technical Levels: Supports and Resistances

EURUSD currently trading at 103.91 at the time of writing. Pair opened at 103.53 and is trading with a change of 0.37 % .

The pair is trading above its 20 Daily moving average @ 102.17, above its 50 Daily moving average @ 102.3 , above its 100 Daily moving average @ 102.87 and below its 200 Daily moving average @ 105.66

The previous day high was 103.65 while the previous day low was 103.16. The daily 38.2% Fib levels comes at 103.46, expected to provide support. Similarly, the daily 61.8% fib level is at 103.35, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 103.25, 102.96, 102.76
• Pivot resistance is noted at 103.73, 103.93, 104.22

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group