DXY: Some consolidation is due, but longer term outlook remains very bullish #dxy #dollar #fx #forex

By | November 28, 2016
DXY: 101.35

The DXY rallied strongly last week, reaching a high of 102.05 before settling at 101.36. In making its move, the index briefly took out the important Fibo resistance seen at 101.80 (61.8% of 121.02 (July 2001 high)/70.72(March 2008 low) and although this will again be difficult to overcome, a sustained move higher could head quickly back to last week’s 102.05 level and the March 2003 top of 102.15, a break of which could then see a quick move higher to test 103.00/20. Beyond that, the current up trend will be targeting the 61.8% projection of 78.90 to 100.39 from 91.91 at 105.19, which if taken out, the next Fibo level is not seen until 109.15 (76.4% of 121.02/70.72). In the near term, the daily indicators are becoming overbought and some consolidation may be in store, possibly with a correction also due. If so, the previous long term high at 101.58 will provide support, a break of which would then head to 100.00 and the first Fibo level at 99.66 which if seen would be an opportunity of buy the dollar again. A cautious stance is currently required, but buying dollars on dips does still seem to be the overriding theme.

24 Hour: Medium Term:

                       

Resistance Support
107.31 Dec 2002 high 101.51 Dec 2015 high
105.19 61.8% Fibo projection (78.9/100.39 from 78.90) 100.00 Psychological
104.00 Minor 99.58 (23.6% of 78.97/102.05)
103.20 Jan 2003 high 99.12 25 Oct high
102.05/15 24 Nov high/Mar 2003 high 98.58 March 2 high

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