Are we looking at a rebound from 98.18/98.65?
US Dollar Index:
Renewed upside momentum, fed by daily support at 95.84, watched the US dollar index (DXY) snap a three-week losing streak to close at +0.14%. Support also benefitted from the completion of a daily AB=CD pattern at 96.16, regarded as a bullish configuration among harmonic traders.
The rebound from support, according to the AB=CD formation, may have price action extend recovery gains this week, targeting the 38.2% daily Fib ret level of legs A/D at 98.51 (common initial take-profit target out of AB=CD patterns), accommodated within daily supply at 98.18/98.65 and placed nearby the 200-day simple moving average at 98.42. Indicator-based traders will also acknowledge the RSI oscillator crossed paths with oversold territory last week, after fluctuating around its 50.00 value since the beginning of April.
The flip side to the above is recent downside also sliced through the lower limit of a bearish pennant configuration (98.27). Traders following this pattern will note the possibility of moves forming as far south as 93.97: the pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
Renewed upside momentum, fed by daily support at 95.84, watched the US dollar index (DXY) snap a three-week losing streak to close at +0.14%. Support also benefitted from the completion of a daily AB=CD pattern at 96.16, regarded as a bullish configuration among harmonic traders.
The rebound from support, according to the AB=CD formation, may have price action extend recovery gains this week, targeting the 38.2% daily Fib ret level of legs A/D at 98.51 (common initial take-profit target out of AB=CD patterns), accommodated within daily supply at 98.18/98.65 and placed nearby the 200-day simple moving average at 98.42. Indicator-based traders will also acknowledge the RSI oscillator crossed paths with oversold territory last week, after fluctuating around its 50.00 value since the beginning of April.
The flip side to the above is recent downside also sliced through the lower limit of a bearish pennant configuration (98.27). Traders following this pattern will note the possibility of moves forming as far south as 93.97: the pennant take-profit target, measured by taking the preceding move and adding the value to the breakout point (yellow).
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