USD Index on the move

February 13, 2017 10:40 AM

In the past week, we have seen the dollar's strength against other currencies; but, the move is not that strong just yet. However, the USD Index traveled out of a 30-day downward channel which could finally put the buck back into bullish mode within a context of a strong uptrend on higher time frame charts. As such, we think that USD could outperform other majors this week, even some commodity currencies such as NZD, while AUD and CAD could actually act quite well if oil and metals will continue to rise.

USD Index, daily 

On the hourly chart of USD Index we are seeing price in a corrective set-back; ideally, it's a wave four that will cause higher prices in the next 24 hours in Wave v) that may hit 101.10/101.20 this week, while 100.40 is not breached.

USD Index, 30-min

 

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/