Technical Analysis – Dollar index finds strong support at 38.2% Fibo
October 25, 2023 3:28 pm
USDX halts retreat at a crucial technical zone
Continues to hover between 38.2% and 50.0% Fibonacci
Momentum indicators endorse the resumption of the recent rebound
The US dollar index (December Futures) has been stuck within a rangebound pattern defined by the 50.0% and 38.2% Fibonacci retracements of the 114.71-99.19 downleg. In the last couple of sessions, the bulls have been trying to push the price higher, with the short-term oscillators endorsing this rebound.
If the price extends its recent bounce, immediate resistance could be met at the 50.0% Fibo of 106.95. Jumping above the latter, the dollar index could then test the 61.8% Fibo of 108.78. Even higher, the 78.6% Fibo of 111.39 may curb further upside moves.
Alternatively, should the price reverse back lower, the 38.2% Fibo of 105.12 could act as the first line of defence. Dipping below that level, the index could descend towards the 23.6% Fibo of 102.85. Further declines could then cease at the 2023 bottom of 99.19.
Overall, for now, the US dollar index appears to be unable to escape its tight range in both directions. Will the latest advance manage to do so?
USDX halts retreat at a crucial technical zone
Continues to hover between 38.2% and 50.0% Fibonacci
Momentum indicators endorse the resumption of the recent rebound
The US dollar index (December Futures) has been stuck within a rangebound pattern defined by the 50.0% and 38.2% Fibonacci retracements of the 114.71-99.19 downleg. In the last couple of sessions, the bulls have been trying to push the price higher, with the short-term oscillators endorsing this rebound.
If the price extends its recent bounce, immediate resistance could be met at the 50.0% Fibo of 106.95. Jumping above the latter, the dollar index could then test the 61.8% Fibo of 108.78. Even higher, the 78.6% Fibo of 111.39 may curb further upside moves.
Alternatively, should the price reverse back lower, the 38.2% Fibo of 105.12 could act as the first line of defence. Dipping below that level, the index could descend towards the 23.6% Fibo of 102.85. Further declines could then cease at the 2023 bottom of 99.19.
Overall, for now, the US dollar index appears to be unable to escape its tight range in both directions. Will the latest advance manage to do so?
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