US Dollar Index (DXY) channeled up strongly for the last three
weeks to threaten the 81.482/81.388 8-month resistance zone. With the daily and
weekly indicators still bullish, scope remains for further upside. Reclaiming 81.482
would complete an 11-month flat base over the 78.998/78.906 lows and trigger
further gains towards 82.671 (Sept 5, 2013 lower high) initially. 80.801 near
the 3-week channel support should hold dips. Only below there would dampen the
bullish momentum and expose 80.420 and the 200 day moving average currently at
80.292.
Trading Bias
Near term, buy on pullbacks
Buy zone around 80.700-80.800
Stop below 80.420
Target near 81.480 – 81.600
DXY daily chart
DXY weekly chart
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