For Traders

Analytical Reviews

Technical analysis

02.09.201921:15 Forex Analysis & Reviews: The Dollar index approaches our 99.15 target

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

In a previous analysis back in August 20th we mentioned that we expect price to eventually break the resistance area around 98 and move towards 99-99.20 level. Today's high is at 99.07 and the weekly RSI continues to diverge.

Green line - bearish divergence

Black line - major support trend line

Red rectangle - resistance (broken)

The Dollar index has broken above a multi month resistance area where prices got rejected several times. This time the break is real and prices move towards 99 as expected. Trend remains bullish and the break above the 61.8% Fibonacci retracement is a big win for bulls. As long as price is above 98-97.70 bulls remain in control of the trend. The weekly RSI is testing important resistance area. The RSI does not confirm the new high by price. Traders should not ignore this bearish divergence. This is not a reversal signal but only a warning.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.