For Traders

Analytical Reviews

Trend line

15.04.202117:54 Forex Analysis & Reviews: Is it time for the Dollar index to resume its up trend?

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 previous posts we have shown similarities of the recent bottom in the Dollar index to the bottom of 2018 and the run up to 103. Price has made an upward move from 89.18 to 93.41 but has retraced back to 91.60. With the RSI oversold in the 4 hour chart, there are increased chances of a reversal to the upside.

Blue lines - bullish divergence

Green lines - expecting similar path to 2018

The Dollar index as we said before has bounced off the horizontal support and previous major low from 2018 and has shown similar bullish divergence signs. The chances for a similar upward move towards 103 are high. However the recent pull back from 93.40 to 91.60 has put the bullish scenario under pressure.

Yellow rectangle - oversold RSI turning upwards

Price has pulled back from 93.40 towards the previous consolidation zone. The RSI is scraping the oversold bottom levels and is now turning upwards. Will this be the start of a new upward move to bring price above 93.40? The chances of a bounce from current levels are high, so bears need to be very cautious as Dollar seems to be gain some strength.

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.