Adam Smith Associates - Dollar Index - Failure To Cross 104 Level Can Results In Long Term Bearish Trend


The Dollar index has been falling for three consecutive weeks. The decline so far is not huge but it was enough to push the weekly momentum back to the sell side. However we have not gone back below the trendline of the expanding pattern seen since 2015. The level is 101. A close below 101 would make the most recent rally a false breakout from this pattern. Most dollar index bullish calls are based on an exponential move from this breakout. However the rally ended at 104 near the 61.8% mark of a long term retracement resistance, of the 2002-2008 bear market in the dollar. That was a very important level and was not surpassed. Failure to cross 104 can result in long term bearish consequences.


Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic & international clients. Views expressed in this article is purely of the author - Mr Rohit Srivastava - a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

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