Dollar Index Review & Outlook

$USDX 4 hour chart - The dollar index finally touched the correction target from previous post last week and is now back above 83.00. Support is now at 81.72 (last week low).

$USDX daily chart - Target projections are based on several multiplier of correction range, added to last week low. AB=CD pattern projection (2x correction range) is my final target. Check points are 1x, 1.382x, and 1.618x correction range at 83.49, 84.32, and 84.82 respectively.

$XAUUSD and $USDX Follow Up Analysis

Gold gained for the 4th day while dollar index consolidate. It reach the mentioned correction target at 50% fib retracement level of October downtrend (x-a) at 1733.
I think we may see a correction pattern forming in the next few weeks (or even until end of year), testing this month low. Daily momEMA(20) still below momEMA(50) and I'm hoping to see 14-day momentum back below 100 level.

$USDX Daily chart - Dollar on demand.

 

$XAUUSD daily chart - Strong resistance around 1737