Forex Technical Update

 

Previous: US Dollar Index - Looking for a Breakout... (4/9)

USD Index

USD

The daily USD Index chart shows a market that has been consolidating and trading between converging trendlines. The resistance was created in 2012 since January, while the support extends back to August 2011. As price nears the apex, it is attacking the triangle resistance. There is not much momentum to this push and the daily RSI reading is still below 60, a sign of consolidation momentum. 80.75 is seen as a key pivot to confirm the break to the upside.

With price above 80.75 and RSI above 60, we are likely heading towards the highs near 82.00. Above the 82 high, the market open up the 83.70 resistance pivot from August 2010.

Join the Market Intelligence Briefings to get fundamental analysis, technical setups, trade plan assessments for EUR/USD, and other currency pairs.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

 

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.