16 Dec 2015
FOMC: Expect new marginal highs for US dollar – SocGen
FXStreet (Delhi) – Research Team at Societe Generale, notes that decisive bullish signals were witnessed in the Dollar Index last year after it broke past the multidecade down pointing triangle (currently at 93.25/92.50).
Key Quotes
“This break occurred after confirming an inverted H&S and a projection for the pattern is at 106.60. Earlier this month, the index retested March highs and has retraced towards our advocated support level of 97.40/10, the 50% retracement since October. Formation of a bullish engulfing yesterday indicates possibility of a recovery. More importantly it is close to the descending trend support of 96.40.
Monthly RSI is holding dual graphical support while daily stochastic indicator is near an upward trend which indicates proximity to important support levels. The overall uptrend is still unbroken as the index appears to be missing one more up leg from an Elliot standpoint; timing ratios also suggest that it will peak at end of 2016.
In the short term, a move towards 99.25 and even towards recent highs at 100.40 looks likely
with next targets at 101.30 and 101.80/102.10. Medium term target would be at 103.30/104.10.”
Key Quotes
“This break occurred after confirming an inverted H&S and a projection for the pattern is at 106.60. Earlier this month, the index retested March highs and has retraced towards our advocated support level of 97.40/10, the 50% retracement since October. Formation of a bullish engulfing yesterday indicates possibility of a recovery. More importantly it is close to the descending trend support of 96.40.
Monthly RSI is holding dual graphical support while daily stochastic indicator is near an upward trend which indicates proximity to important support levels. The overall uptrend is still unbroken as the index appears to be missing one more up leg from an Elliot standpoint; timing ratios also suggest that it will peak at end of 2016.
In the short term, a move towards 99.25 and even towards recent highs at 100.40 looks likely
with next targets at 101.30 and 101.80/102.10. Medium term target would be at 103.30/104.10.”