USD Index: After A Bounce, A Deeper Wave ‘C’ Could

0

The US dollar had a mostly positive week last week, but against some currencies, it is still struggling. What about the technicals on the US dollar index?

Here is their view, courtesy of eFXnews:

Bank of America Merrill Lynch FX Technical Strategy Research notes that the weekly chart of the DXY is most oversold according to RSI, while the BBDXY charts show a daily TD Sequential buy signal at weekly trend line support and this supports a bounce.

“The DXY declined below 97.50, which we said was a risk, exceeds the minimum requirement for a corrective wave c to end.

However we remain aware a deeper wave c could extend as low as 94.85 while market profile targets 95.50,” BofAML projects.

For lots more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor
I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.