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9 Feb 2015
USD index channel break to set up the next phase higher – Danske
FXStreet (Barcelona) - The Danske Bank Research Team views that the USD index is set to move towards higher levels, targeting 96.424 levels, while the long term objective remains at 104.50.
Key Quotes
“The USD Index is trading within a shallow corrective/consolidative channel following the last up-leg from the mid-December 2014 higher low at 87.627. This phase reached 95.527 on 25 January, just shy of 95.859, the 50% retracement point of the major 121.02 to 70.698 negative cycle.”
“Weekly MACD continues to support the very solid longer term structure and a break above 94.549 will confirm an exit from the corrective channel, signalling gains through the current longer term phase high at 95.527 and the 50% retracement level at 95.859, towards an initial projected objective at 96.424.”
“Beyond this point, lies a further significant level at 99.490, the 26 August 2003 high.”
“However, the long-held, long-term target/projection remains at 104.50.”
“The 3 February 2015 spike low at 93.250 now offers immediate support and this point shields recent higher lows at 92.476 and 92.151. Only a loss of these points would delay the underlying advance more significantly.”
Key Quotes
“The USD Index is trading within a shallow corrective/consolidative channel following the last up-leg from the mid-December 2014 higher low at 87.627. This phase reached 95.527 on 25 January, just shy of 95.859, the 50% retracement point of the major 121.02 to 70.698 negative cycle.”
“Weekly MACD continues to support the very solid longer term structure and a break above 94.549 will confirm an exit from the corrective channel, signalling gains through the current longer term phase high at 95.527 and the 50% retracement level at 95.859, towards an initial projected objective at 96.424.”
“Beyond this point, lies a further significant level at 99.490, the 26 August 2003 high.”
“However, the long-held, long-term target/projection remains at 104.50.”
“The 3 February 2015 spike low at 93.250 now offers immediate support and this point shields recent higher lows at 92.476 and 92.151. Only a loss of these points would delay the underlying advance more significantly.”