Expectations are a move to the upside surrounding positive news of Mario Draghi being approached to become the Italy's Prime Minister.
On the USD Index (DXY) front we can see a stark resistance being formed around the 91 handle with expectations of a pull back to the 90 region.
Trade with caution, this is not financial advice.
DXY is approaching its support at 96.80(61.8% Fibonacci extension, 23.6% Fibonacci retracement, horizontal pullback support)
where price is expected to bounce up to its resistance at 97.25 (horizontal swing high resistance, 61.8% Fibonacci extension).
Ichimoku cloud is showing bullish where a corresponding bounce is expected.
Trading CFDs on margin carries...
- Tendency: Upward
- Above support
- Reversal candle W1
- Structure: uptrend
- Tendency: Downward
- Double bearish candle at Support Daily
- Break down and confirmation --> Move down
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The anticipated break higher has been seen, with the USD index reaching 103.65.
A corrective pullback is now highlighted, however, as overbought momentum studies unwind, with a break below the 101.80 retracement opening up congestion around 101.00 and the 100.70 retracement.
Still deeper reactions cannot be ruled out, but critical support within 99.43/75 should...