Hi Traders! Dollar Index forecast update and follow up is here. On March 10th 2022 I shared this “Dollar Index Technical Analysis And Forecast” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
On the H4 chart, we could see that the price which was moving higher has created higher highs here as well based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Currently, it looks like a pullback is happening with the price creating a bullish hidden divergence that has formed between the first low that has formed at 96.440 and the second low that has formed at 97.765 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones hold my view remains bullish here and I expect the price to move higher further.
On the H4 chart, based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further until the two key support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first key support zone, respected it and then it moved higher further delivering 150+ pips move so far!
On the M15 chart, the market provided us with various facts supporting the bullish view. The price which was moving lower created a bullish divergence between the first low that has formed at 97.947 and the second low that has formed at 97.765 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that and provided an amazing move to the upside.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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