The US Dollar Index has produced a bullish engulfing candle on the weekly timeframe after failing to break down the weekly resistance level at 101.50.
On the daily timeframe, there is a breakout of the falling wedge pattern with a positive divergence on the MACD indicator.
The price still has three more resistance levels to overcome before it can be considered a buy signal: the yearly ascending trendline, the 103.5 resistance level, and the 50-day moving average.
Once the buy signal is in play, the potential target may be 105.70, but the price may fall to retest 103.5 to form a head and shoulders pattern.
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On the daily timeframe, there is a breakout of the falling wedge pattern with a positive divergence on the MACD indicator.
The price still has three more resistance levels to overcome before it can be considered a buy signal: the yearly ascending trendline, the 103.5 resistance level, and the 50-day moving average.
Once the buy signal is in play, the potential target may be 105.70, but the price may fall to retest 103.5 to form a head and shoulders pattern.
----------------------
Let me know your thoughts in the comments, and show your support by liking the idea.
Please follow if you're interested in more ideas like this.
Your support is greatly appreciated!
