30 Dec 2014
USD Index might move further higher –Voodoo Analyst
FXStreet (Barcelona) - Austin Galt of The Voodoo Analyst shares that the USD Index has broken the key resistance at 89.71, further anticipating it to move higher as there are no signs of any reversal yet.
Key Quotes
Monthly charts:
“The US Dollar has recently broken some key resistance levels which leads me to believe an even bigger rally is set to take place. However, I still expect a move back down in the short term before this rally really kicks into gear.”
“The US Dollar index has broken above a key resistance level being the March 2009 high at 89.71 which was the previous major swing high. There is still no sign of reversal so it is quite possible for price to go even higher before reversing. Price may even take out the November 2005 swing high at 92.53 before the correction commences. This level is denoted by the higher horizontal line. Personally, I favour that happening. Let’s see.”
“The Bollinger Bands show price clinging to the upper band which is normal for a big uptrend. I expect a short term high shortly and once in place I will be looking for price to come back to the middle Bollinger Band before resuming back upwards.”
“The Relative Strength Indicator (RSI) is overbought so a move down shortly surely has to be on the cards. Then after price turns back up perhaps any new rally highs will be accompanied by bearish divergences.”
“The Moving Average Convergence Divergence (MACD) indicator is trending up and looking bullish although the averages appear to be diverging quite a bit so perhaps a correction will return them to normalcy. I suspect a pullback will see these averages come together for a “kiss” before price turns back up and these averages continue trending up.”
Key Quotes
Monthly charts:
“The US Dollar has recently broken some key resistance levels which leads me to believe an even bigger rally is set to take place. However, I still expect a move back down in the short term before this rally really kicks into gear.”
“The US Dollar index has broken above a key resistance level being the March 2009 high at 89.71 which was the previous major swing high. There is still no sign of reversal so it is quite possible for price to go even higher before reversing. Price may even take out the November 2005 swing high at 92.53 before the correction commences. This level is denoted by the higher horizontal line. Personally, I favour that happening. Let’s see.”
“The Bollinger Bands show price clinging to the upper band which is normal for a big uptrend. I expect a short term high shortly and once in place I will be looking for price to come back to the middle Bollinger Band before resuming back upwards.”
“The Relative Strength Indicator (RSI) is overbought so a move down shortly surely has to be on the cards. Then after price turns back up perhaps any new rally highs will be accompanied by bearish divergences.”
“The Moving Average Convergence Divergence (MACD) indicator is trending up and looking bullish although the averages appear to be diverging quite a bit so perhaps a correction will return them to normalcy. I suspect a pullback will see these averages come together for a “kiss” before price turns back up and these averages continue trending up.”