x
0
SCOTTRADE ACCOUNT IT'S TIME. It's time for an easier way to invest. Open a Scottrade Account
Apply Now

U.S. Dollar Index Triple Tops To End 2016

By Vantage FX (Dane Williams)ForexDec 28, 2016 11:14PM ET
www.investing.com/analysis/usdx-triple-tops-to-end-2016-200170997
U.S. Dollar Index Triple Tops To End 2016
By Vantage FX (Dane Williams)   |  Dec 28, 2016 11:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

In yesterday’s Daily Market Update we spoke about the dangers of trading between Christmas and New Years.

I’m not going to say that on Wednesday and then back Thursday up with a day trading setup, so I’ve focused today around a higher level view of the US Dollar Index, with the idea that you can use the levels to help plan your January 2017 trading in the majors.

First we zoom out to a weekly and look at the parabolic rally that we ended the year on thanks to the Fed’s hawkish 2017 outlook and to a lesser extent, Trump.

USDX Weekly:

USDX Weekly Chart
USDX Weekly Chart

Click on chart to see a larger view.

With price breaking out of that triangle, we have seen clean, technical retests of each weekly support/resistance level on the way up. This confirms that the USDX reacts to levels just like any other tradable forex chart.

But it’s the hourly where things start to get really interesting.

USDX Hourly:

USDX Hourly Chart
USDX Hourly Chart

A clean triple top?

“A pattern used in technical analysis to predict the reversal of a prolonged uptrend. This pattern is identified when the price of an asset creates three peaks at nearly the same price level. The bounce off the resistance near the third peak is a clear indication that buying interest is becoming exhausted. It is used by traders to predict the reversal of the uptrend.”

Being the USDX, keep this chart in mind when you’re trading the majors come next week.

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

U.S. Dollar Index Triple Tops To End 2016
 

Related Articles

U.S. Dollar Index Triple Tops To End 2016

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.