USDOLLAR testing bullish trendline (need confirmation)
Last week, I wrote that I expected the Dow Jones-FXCM US Dollar Index to break a resistance level at 12,040 points. The failed break at the beginning of the week was followed by a 1% drop yesterday, that cannot be explained by hard fundamentals. I think it had to do more with repositioning by traders who had bought the greenback too late on Friday/Monday (i.e. short squeeze on EUR/USD). This morning I have noticed that the USDOLLAR seems to be stabilizing just above a bullish trend line coming in from the June lows. This would be the third test necessary to confirm the presence of such a trend line for all those die-hard tech traders. If the dollar bounces back up to levels seen Monday, my initial call for a bullish breakout above 12,040 points would still be in play. Any longs initiated at current levels have a decent risk/reward ratio as stops are relatively tight (just below 11,060 points should be fine).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.