Dollar index has rallied for two consecutive weeks and is now trading just a few pips short of the neckline level of the larger inverse head and shoulder formation. The neckline is seen around 101.65.
Watch out for a failure at 101.65 levels next week, although that may not result in a major sell-off given we are still a month away from the Dec Fed.
However, a minor correction following a failure at the neckline cannot be ruled out.
On the other hand, a monthly close above the neckline would signal a major bullish break.
Watch out for a failure at 101.65 levels next week, although that may not result in a major sell-off given we are still a month away from the Dec Fed.
However, a minor correction following a failure at the neckline cannot be ruled out.
On the other hand, a monthly close above the neckline would signal a major bullish break.
