U.S. Dollar Index Futures (DX1!), H4 Potential for Bullish continuation
Type :
Bullish Momentum
Key Levels:
Resistance : 105.580
Pivot: 103.520
Support : 102.780
Preferred Case:
On the H4, price expected to bounce off the ichimoku cloud support which supports our bullish bias that price will rise from our pivot at 103.520 in line with the swing low support and 50% Fibonacci retracement to the 1st resistance at 105.580 in line with the 61.8% fibonacci projection and horizontal swing high resistance.
Alternative scenario:
Alternatively, price may break through pivot structure and drop to the 1st support at 102.780 in line with the pullback support and 61.8% Fibonacci retracement.
Fundamentals:
As US Banks come back from the holiday, the DXY is expected to break out of the current consolidation to form a directional bias. Although there is no major news for the US today, the economic uncertainty continues, therefore expect to see increased volatility in the DXY.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.