Lower levels for the US dollar - bearish pennant in motion
The US dollar index (DXY), a measure of the buck’s value against a basket of six major currencies, nosedived 1.4% last week, recording its third successive weekly decline.
Recent trade, by way of eight consecutive daily bearish candles, sliced through the lower limit of a bearish pennant configuration (98.27), subsequently taking on the 200-day simple moving average at 98.47 and demand from 98.18/98.65. Clearance of these areas throws light on a 78.6% Fib ret level at 96.40 this week – Friday bottomed just ahead of this angle following upbeat non-farm payrolls – as well as support at 95.84.
Additionally, traders will note the possibility of moves forming as far south as 93.97 over the coming weeks: the bearish pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
Indicator-based traders will also acknowledge the RSI oscillator crossed paths with oversold territory Friday, after fluctuating around its 50.00 value since the beginning of April.
Recent trade, by way of eight consecutive daily bearish candles, sliced through the lower limit of a bearish pennant configuration (98.27), subsequently taking on the 200-day simple moving average at 98.47 and demand from 98.18/98.65. Clearance of these areas throws light on a 78.6% Fib ret level at 96.40 this week – Friday bottomed just ahead of this angle following upbeat non-farm payrolls – as well as support at 95.84.
Additionally, traders will note the possibility of moves forming as far south as 93.97 over the coming weeks: the bearish pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
Indicator-based traders will also acknowledge the RSI oscillator crossed paths with oversold territory Friday, after fluctuating around its 50.00 value since the beginning of April.
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