Dollar Index has sharply fallen since the start of this week. But it has found support at or around the 200-DMA which is also the 50% fibonacci retracement of the move from lows of September, 2012 to highs of May, 2013. It has also completed the parallel channel play at the lower side of the channel. And, importantly the earlier resistance of 81.3-81.45 is now acting as a support!
But will this support last or it will continue to the downside? Are we in for surprise moves in all asset classes post today’s jobs numbers? A positive jobs report will definitely help Dollar Index in taking a U-turn. But in context of QE (Quantitative Easing) the the irony is that US markets are actually confused over the fact that which would be better for them – a good or bad jobs number today!! That confusion can be easily seen in equities going down with Dollar Index in last 3-4 days!!
Now it’s your turn…..
Feel free to share your experience and thoughts in the comments area.
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