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22 Apr 2014
USD index: Major bottom found - FXA
FXStreet (Bali) - David Solin, Partner at FXA, shares his technical take on the USD index nearer term outlook, noting that a major bottom may be in place.
Key Quotes
"The market is seen in process of a bottoming, and with eventual gains back to the Apr 4th high at 80.60 and above (potentially significantly higher, see longer term below). Note that the upmove from the Mar 13th low at 79.25 to that 80.60 high occurred in 5 waves (see numbering on daily chart below), and argues that the upside is not 'complete'."
"Nearby support is seen at the bullish trendline from Apr 10th (currently at 79.60/70, with a break raising the risk for another couple weeks of a broader bottoming), and the bullish trendline from key Oct (currently at 79.25/35). Resistance before the 80.60 high is seen at 80.15/35 (apex of the late March triangle, where the trendlines meet)."
"With the market seen bottoming for gains above the 80.60 high (and potentially a lot higher), would stay with the buy that was put in place on Apr 14th at 79.70. Initially stop on a close 10 ticks below that bullish trendline from Oct, but getting much more aggressive on a break above the 80.60 high."
Key Quotes
"The market is seen in process of a bottoming, and with eventual gains back to the Apr 4th high at 80.60 and above (potentially significantly higher, see longer term below). Note that the upmove from the Mar 13th low at 79.25 to that 80.60 high occurred in 5 waves (see numbering on daily chart below), and argues that the upside is not 'complete'."
"Nearby support is seen at the bullish trendline from Apr 10th (currently at 79.60/70, with a break raising the risk for another couple weeks of a broader bottoming), and the bullish trendline from key Oct (currently at 79.25/35). Resistance before the 80.60 high is seen at 80.15/35 (apex of the late March triangle, where the trendlines meet)."
"With the market seen bottoming for gains above the 80.60 high (and potentially a lot higher), would stay with the buy that was put in place on Apr 14th at 79.70. Initially stop on a close 10 ticks below that bullish trendline from Oct, but getting much more aggressive on a break above the 80.60 high."