The DXY finally headed up and away from the resistance at 88.70 and has proceeded on towards the next resistance at 89.62 -March 2009 peak – by reaching 89.46 on Friday, closing just below the high. A break above here, which seems pretty much inevitable would then head on to 89.83, the 200 Month MA, which should prove to be formidable resistance, but beyond 90.00 would then head on towards the November 2005 high at 92.63. Don’t get too excited any time soon about a move of this magnitude although eventually I think we are going to get there, and an awful lot higher, over the next couple of years, perhaps sooner, at the current rate of progress!On the downside, the first support levels are seen at the previous 88.70 support, below which could see a return to 88.40. This looks a little unlikely right now, but the DXY has come a long way in a short period of time so a correction may be due and therefore some caution is warranted. Raising stops on long positions to lock in profits should be considered.
The indicators are all pointing north still though, so staying long dollars is the way to go, although some lightening up of long positions at the 200 Month MA (89.83) would not be such a bad idea, looking for a correction in order to re-enter long dollar positions once again.
www.tradingview.com DXY: Daily
…www.tradingview.com : DXY Weekly
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