Yesterday’s price action on the US Dollar index was highly significant with the price once again testing the key resistance at 81.60, which defines the upper level of the current congestion zone which has extended from October 2012.
Whilst yesterday’s candle ended as a wide spread up bar, the high of the day touched an intra day high of 81.61, before pulling back overnight to currently trade at 81.39. However, the index now appears to have some real momentum and having breached the interim resistance at 81.20 there may now be sufficient upside pressure to move to 81.83 and there after through to test resistance in the 82.11 area.
Should this occur then there will be a substantial platform of support to sustain further dollar strength in the medium term.
By Anna Coulling
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