Triple top on the Dollar Index?

fxstrategist

Established member
579 15
The triple top pattern forms when the price of an asset visits three times de same resistance zone, but does not manages to break it. On the daily chart of the Dollar Index we can see that the instrument has visited three time the resistance at the 97.53 level from where it bounces to the downside. The index has been oscillating around the 97.00 level with the 55 day EMA acting as a support. The Dollar Index is actually in a bullish trend, confirmed by the angle of inclination of the 55 and 200 day EMAs. The candle lows have been higher than the previous ones and that is a sign that the bullish pressure is accumulating at the 97.53 level. Its next resistance could be the 98.00 level and to the downside, the 96.00 level could act as support along with the 55 day EMA.

 

Wilson80

Member
92 1
It seems that 97.530 will be the high of 2018 and since November it has been in a choppy sideways trading action. Looks like is not going anywhere soon.
 

fxstrategist

Established member
579 15
The Dollar index breaks below the 96.00 level and it could reach the 95.00 level where we can find the 200 day EMA, however the index has been oscillating around the 96.00 level and it could head in any direction.
 

Wilson80

Member
92 1
I fully agree with your assessment and later today we will have nonfarm payrolls (NFP) which brings volatility into the market. Analysts expect an addition of 177k jobs to the headline NFP figure.
 

fxstrategist

Established member
579 15
The bearish momentum continues on the Dollar index and drops near the 95.00 level, which could act as support. Below the 95.00 level, the 200 day EMA may also contribute to that zone becoming support. On the other hand, in case of a bullish pullback, the 96.00 level could act as resistance.
 

tomorton

Legendary member
7,162 932
Bearish reversal from a Triple Top. Or bullish continuation from an Ascending Triangle.

Statistics favour continuation. But reversal has the better intermediate term opportunity.

The only thing to not do here is miss the trade - when it comes - we're not there yet.