HomeContributorsTechnical AnalysisDollar Index: Bulls Regained Control After Hotter Than Expected US January Inflation

Dollar Index: Bulls Regained Control After Hotter Than Expected US January Inflation

The dollar index is trading near three-month high in early Wednesday, following sharp rise (0.7%) on Tuesday, sparked by higher than expected US January inflation, which cooled bets for the first Fed rate cut.

Fresh advance generated bullish signals on break above near-term consolidation range and close above pivotal Fibo barrier at 104.46 (61.8% retracement of 107.03/100.29 downtrend).

Daily studies improved further, as positive momentum remains strong and rising moving averages created several bull-crosses, underpinning the action.

Bulls eye targets at 105.00/44 (psychological / Fibo 76.4%) though overbought conditions may prompt traders to collect some profits and position for fresh push higher.

Broken Fibo 61.8%, also former tops of Feb 5/6 (104.46) reverted to solid support, followed by converged 10/100DMA’s (104.02) which should contain dips and provide better buying opportunities.

Broken 20 and 200DMA’s (103.62/45) mark lower pivots, loss of which will be bearish.

Res: 105.14; 105.44; 105.87; 106.55.
Sup: 104.46; 104.24; 104.02; 103.62.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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