The movement of the US Dollar Index throughout August was seen to be oversold after reaching equilibrium at the opening of January 2018. A bounce in the range of 92 marks the next retest of riskier assets from the Dollar which is losing its breath.
Bouncing around last week’s low price range of $ 91.71 through the end of August, the Dollar held and traded above 93.00 as other risk assets, commodities and currencies underwent massive selling.
What needs to be watched is whether Dollar support has a leg up to the weekly close. If that happens, another risky asset liquidation sale is likely to continue. Resistance takes the 93.87 and 94.57 figures. The new support is forming in the pinbar pattern at 92.67 while it is the closest. The positive divergence bias is very evident, however, it requires further confirmation to confirm the validity of the pattern. At first glance, it seems like it is entering the accumulation phase.
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Ady Phangestu
Market Analyst – hfindonesia
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