The US Dollar index charted a high of 102.99 last week,which alongside a large divergence of the daily RSI reflects a loss of upside momentum in the opinion of Karen Jones from Commerzbank.
Key quotes
“We note the TD perfected set up on the daily chart and the 13 count on the 240 minute chart, all imply that the market is in need of consolidation and/or a correction lower.”
“TD resistance lies at 103.20. This has occurred just ahead of the 103.82 2017 high and we suspect that the market will consolidate its recent sharp gains.”
“We would allow for a retracement back into the 99.80/98.80 (38.2% and 50% retracement), but we should see recovery from there. Provided it stabilises there we should see a reattempt on the 103.82 2017 high.”
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