Disclaimer: The
The pair displayed its characteristic move once again. It holds on to a smaller range for longer time and suddenly slips or triggers higher. The break of 82.45 triggered a technical sell-off which saw further momentum taking the pair to the next major support at 81.10. The momentum is likely to continue and any pull back towards the trend line resistance at 81.70 and 82.20 is likely to see selling pressure. Break below 81.10 can trigger further stops being hit to see the pair drift towards 80.50. Most likely scenario would be a consolidation between 80.50 and 81.80. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
- Steep trend line broken
We may not see a runaway in DXY. There can be relief rallies.
The Dollar Index-DXY is likely to hover in the familiar range of 102-105
Any spike in DXY need not necessarily impact this pair
The raising upward channel indicate the broader range of 80.10-83.10
The increased volatility and wild swings likely to continue