Hi Traders! US Dollar Index technical analysis and short-term forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
US Dollar Index H4(4 Hours) Chart Analysis – Key Resistance Zone, Uptrend Line Breakout, Lower Lows
On the H4 chart, the price reached a key resistance zone that has formed based on the 161.8%%(103.621) Fibonacci expansion level of the first wave and the 100%%(103.693) Fibonacci expansion level of the second wave. The price respected this zone and is currently bouncing lower from it. In addition to this, the price which is moving lower has also broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Also, the price moved lower and has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. In addition to this, we could see that the price which was creating a series of higher highs, higher lows so far has made a turn around and has created lower lows for the first time in a while, which we may consider as yet another evidence of bearish pressure. Also, currently there are no signs opposing this bearish view at the moment. So everything looks good here for the bears and we may now move down to a lower timeframe and look for evidence supporting this short-term bearish view.
US Dollar Index H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Stochastic Oscillator, Two Strong Resistance Zones
Technical Analysis & Forecast Summary
US Dollar Index H4(4 Hours) Chart Analysis
- Key Resistance Zone, Uptrend Line Breakout, Lower Lows
US Dollar Index H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Stochastic Oscillator, Two Strong Resistance Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
