Alexandros Yfantis | Jun 19, 2017 11:05AM ET
As many of you know, I have been bullish or at least neutral the dollar for the last couple of weeks expecting a strong bounce toward 98.50-99. The Dollar index is mainly moving sideways since mid May and we need a break above 97.50 to confirm a short-term at least reversal that will bring us toward 98.50-99.
The main drivers in the up coming bounce will be USD/JPY and EUR/USD. EUR/USD is unable to reclaim 1.12 and with a double short-term rejection at the cloud resistance in the 4-hour chart, I believe it is only a matter of time before we break 1.11 toward 1.10-1.09.
USD/JPY has broken above important trend line resistance and is heading toward the medium-term resistance at 112-113.
NZD/USD is also at a pivotal long-term resistance area around 0.73 with rejection signs as we have been pulled back twice….0.7180 is key support, if broken we confirm reversal.
Posting bearish divergence signals and a double top at 0.7635, once the red upward-sloping TL is broken (0.7590) we should expect to see it test the Kumo at 0.7540 at least.
In a bearish channel but no bullish divergence in the daily chart. One more new low could be at hand before a meaningful move higher above 1.30.
Can’t be more clear than this….I would not be bearish dollar here…and I prefer short EUR/USD and long USD/JPY for the coming days.
Written By: Alexandros Yfantis
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.