DX US Dollar Update

With the solid move off the mid October low under 94 to now breaching 97 with the help of Draghi and the Chinese central bankers, the question is now whether we have an important bottom in place or we are just working on an interim top.

The area we find ourselves in should sort that story out one way or the other reasonably soon…with 98-98.50 as key resistance for the downside view, or an important area to break up through for the bullish picture.

An equality measure between 97.50-97.80 (depending on where we measure the top of A at) is the last potential for the downside picture to remain valid. Price has already touched through the major channel top, which could be a warning of what’s in store. But it’s quite a tentative world at present with all of these central bankers at work and with the debt issue still hanging over the US’ head, there are many crosscurrents that can appear, which suggests an open mind as a starting point is rather important.

So, with the week ending with price over 97, there are some big choices dead ahead for this instrument with the Yellow count still alive with the above figures holding…otherwise it’s orange (on the daily chart) and targeting into the 103-108 region.

DX15-daily-oct24DX15-mthly-oct24

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