US DOLLAR INDEX - SUPPLY & DEMAND ZONE ANALYSIS
Hi Traders,
Is it time to short the dollar at the supply zone? well, from a fundamental perspective, the dollar is still king. The fed still looking likely to hike interest rates and the economy is still on track. Compare the US economy with recent Japan GDP figures, uncertainty around Brexit and Italian budget worries and you'll see that it's not a wise move to short the dollar at the moment.
From a technical perspective, the level of supply that price has reached has been touched a couple of times so is likely to break. support and resistance traders (purple zone) believe that the more a level is touched the stronger a level becomes, which is false. price can reverse at this level but the question you have to ask is shorting the usdollar (on other usd crosses) is the right trade opportunity?
Is it time to short the dollar at the supply zone? well, from a fundamental perspective, the dollar is still king. The fed still looking likely to hike interest rates and the economy is still on track. Compare the US economy with recent Japan GDP figures, uncertainty around Brexit and Italian budget worries and you'll see that it's not a wise move to short the dollar at the moment.
From a technical perspective, the level of supply that price has reached has been touched a couple of times so is likely to break. support and resistance traders (purple zone) believe that the more a level is touched the stronger a level becomes, which is false. price can reverse at this level but the question you have to ask is shorting the usdollar (on other usd crosses) is the right trade opportunity?