The US Dollar Index continues its climb, currently trading above 104.000, driven by robust US Treasury bond yields. (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 continues its climb, currently trading above 104.000, driven by robust US Treasury bond yields.
- A third consecutive daily close above the 200-day EMA could solidify a bullish outlook, putting 105.000 within reach.
- Downside risks persist, with a potential fall towards 103.000 if the DXY drops below the 200-day EMA.
The pair currently trades last at 104.21.
The previous day high was 103.92 while the previous day low was 103.36. The daily 38.2% Fib levels comes at 103.7, expected to provide support. Similarly, the daily 61.8% fib level is at 103.57, expected to provide support.
The US Dollar Index (DXY), which measures a basket of six currencies against the US Dollar (USD), extended its rally to four consecutive days, distances from the 200-day Exponential Moving Average (EMA) at 103.743, claimed on May 24, underpinned by high US Treasury bond yields. At the time of writing, the DXY is trading hands at 104.211, gaining 0.31%, with bulls eyeing the 105.000 mark.
On Wednesday, I wrote, “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.” For two consecutive days, the DXY stays above the latter suggesting that bulls are gathering momentum. Nevertheless, a third daily close above the 200-day EMA could cement the bias as bullish, and with the double-bottom in play, the 105.000 is up for grabs.
Must read:
If the US Dollar Index claims the year-to-date (YTD) high of 105.883, that will validate the double-bottom chart pattern, but the buck must surpass crucial resistance levels on its uptrend. 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 in charge.
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 104.21 at the time of writing. Pair opened at 103.91 and is trading with a change of 0.29 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 104.21 |
| 1 | Today Daily Change | 0.30 |
| 2 | Today Daily Change % | 0.29 |
| 3 | Today daily open | 103.91 |
The pair is trading above its 20 Daily moving average @ 102.29, above its 50 Daily moving average @ 102.28 , above its 100 Daily moving average @ 102.87 and below its 200 Daily moving average @ 105.63
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 102.29 |
| 1 | Daily SMA50 | 102.28 |
| 2 | Daily SMA100 | 102.87 |
| 3 | Daily SMA200 | 105.63 |
The previous day high was 103.92 while the previous day low was 103.36. The daily 38.2% Fib levels comes at 103.7, expected to provide support. Similarly, the daily 61.8% fib level is at 103.57, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 103.54, 103.17, 102.98
- Pivot resistance is noted at 104.1, 104.29, 104.66
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 103.92 |
| Previous Daily Low | 103.36 |
| Previous Weekly High | 103.63 |
| Previous Weekly Low | 102.20 |
| Previous Monthly High | 103.06 |
| Previous Monthly Low | 100.79 |
| Daily Fibonacci 38.2% | 103.70 |
| Daily Fibonacci 61.8% | 103.57 |
| Daily Pivot Point S1 | 103.54 |
| Daily Pivot Point S2 | 103.17 |
| Daily Pivot Point S3 | 102.98 |
| Daily Pivot Point R1 | 104.10 |
| Daily Pivot Point R2 | 104.29 |
| Daily Pivot Point R3 | 104.66 |
[/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
