After 7 weeks of lower lows for the USD, I see potential for the beginning of a turn around in the greenback. Strong jobs data last week from the Fed and US ISM predicted positive early next week, followed up with rate decisions from the BOE, RBA & RBNZ later in the week. Technically, DXY is reacting with the bottom of a two year channel, but is yet to close above 10 EMA. elsewhere on the chart MACD is crossing and RSI is breaking upwards from the oversold 30 level.
In conclusion I see a case for going long on USD in the mid term, however this is reliant on further signals from fundamentals and technicals over the next week.
Hi Oliver, I agree with the move higher. I think we have the weekly chart for the DXY showing an 7 year upwards trend line about to get tapped. Low test as well on the weekly. This was countered though by massive acceleration to the downside and Trump talking down the USD.. ?
OliverR.Evans
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@gremic, Going to be watching the index closely tomorrow, liking the look of NZD & AUD shorts, approaching that cautiously though as would hate to get caught calling it to early!