DOLLAR INDEX ANALYSIS

After 2 weeks reaching out to 103.25, dollar is sliding continuously but now reaching toward some important levels.

From the beginning of 2017, dollar index has slides from 103.25which also was a old trend line resistance (shown in exhibit 1) to 101 level due to some profit booking and Mr. Trump press conference which didnít go as per dollarís bulls plan, some of the longs who entered late in dollar also got trapped who went with dollar, considering the breakout of couple of years range 93 to 100.

The resistance(2 Years consolidation range) which was broken by end of last year ,so it should now be consider as support .in case if it find support around these levels, one can expect it to reach around previous high and possibly than it can make a new high around 104 level .

But in case if it breaks 100 level and close below 100 levels than it only like to take support around 97 levels as a upward trend line is present at those levels. Also there are key data to watch out for those are US retail sales and CPI on 13th and 17 January respectively before new elected president take the charge on 20the January, 2017.

 

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  • Shri Bhagwan

    batter article on $….

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