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Currency
by Seth Parker on October 16, 2018

Dollar Index Analysis – First signs of problems?

American Dollar lost a little bit of the bullish momentum that could have been seen in the previous weeks. In this piece, we will analyse the Dollar Index and that will be the first time, that we are doing it on our portal. Current situation is rather negative. Let’s see why.

The most important negative factor here is that the price failed to hold above the blue horizontal support. That creates a false breakout pattern, which should result with a further drop. What is more, the price is currently creating something like a Head and Shoulders pattern, being actually in the middle of the process of creating lower lows and highs. In my opinion, the sentiment is negative and we should soon see the breakout of the yellow support.

dollar index chart

The current aim is on the support marked with an orange colour, which in this case is a neckline of the head and shoulders formation. Breakout of that area could be lethal so buyers should avoid that at all costs.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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