The DXY has completed a ABC corrective pattern after catching support on the black 61.8% Fibo retracement level of 101.824. The greenback now looks set to start another 5-wave impulse higher which could see the DXY climb higher and re-test the 50-week MA level of 105.737.
The DXY is currently testing the first resistance rate, the green 23.6% Fibo retracement level at 103.900. The daily indicators are suggestive of a slight pull back but thereafter I expect the DXY to climb higher towards the 38.2% Fibo level at 105.877 which coincides with the 50-week MA.
A break above 105.737 will allow the DXY hit the blue range between 109.185 and 109.588 (the green 61.8% Fibo and black 23.6% Fibo).
In terms of the weekly technical indicators, we have a convincing MACD buy signal and the RSI has room to move higher before creeping into the overbought zone.
The DXY is currently testing the first resistance rate, the green 23.6% Fibo retracement level at 103.900. The daily indicators are suggestive of a slight pull back but thereafter I expect the DXY to climb higher towards the 38.2% Fibo level at 105.877 which coincides with the 50-week MA.
A break above 105.737 will allow the DXY hit the blue range between 109.185 and 109.588 (the green 61.8% Fibo and black 23.6% Fibo).
In terms of the weekly technical indicators, we have a convincing MACD buy signal and the RSI has room to move higher before creeping into the overbought zone.
