the daily chartist

Dollar Inxed recap for 24.02.2016

published 6 years ago
Dollar Index Daily

The overall U.S. Dollar strength is currently uplifted by the strong headwinds from the UK with their Brexit on the table, weakening the pound and dragging the euro down with it. Price managed to fall rapidly down towards 95.60 in the support zone from 95.82 and from then to now is making new highs on the daily chart. Price manage to go trough 97 and 97.40, reaching yesterday 97.92. Looks like the price is in a very tight wedge with a brake-out very soon. Conditions may apply a brake upwards towards 97.92 and 98 and beyond if dollar appetite remains solid. This may very well be a correction with a perspective for a brake downwards and if this scenario occurs 97.39 will be breached and price will for first for 97 before diving in any further down. 

 Again sentiment will be the driving force for the direction of the markets.