Dollar Index Update

$USDX Daily Chart - The dollar index gained last week as expected, reaching the first check point at 1.382 of BC (previous post). The Euro and Pound weakened about 130 pips and 180 pips respectively against the dollar while Yen, Swiss Franc and Canadian Dollar weakened 131, 130 and 160 pips respectively.

$USDX 4 hour Chart - I remain bullish on the US against the Yen and Canadian Dollar, but I think it might find resistance against the Euro, Pound and CHF. Next check point for USDX is at 84.82. Economic Data Calendar 

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.

Dollar Index Weekly Outlook

$USDX DAILY CHART - The dollar index has broken the rising trendline from early February after it failed to close above 82.97 ( 161.8% of AB). I am hoping to see short-term reversal for the dollar, targeting retracement levels of the rally (see chart below).

$USDX 4-HOUR CHART - The dollar index currently trade around 82.45/55, just above 23.6% retracement level at 82.17. Next support levels are 38.2% and 50% at 81.55 and 81.05 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