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29 Dec 2014
USD Index short-term breakout confirmed – Sunshine Profits
FXStreet (Barcelona) - Mike McAra of Sunshine Profits, notes that the USD Index closed the week above 90 and also above the rising short-term resistance line, this confirms the short-term breakout.
Key Quotes
“The USD Index closed the week above 90 and also above the rising short-term resistance line, so the short-term breakout is confirmed. The implications for the next several days are bullish.”
“The USD Index has just encountered a major resistance line that it needs to surpass before a rally to 92 becomes very probable – the 38.2% Fibonacci retracement levels based on the entire 2002 – 2008 decline.”
“The Fibonacci retracements have worked for the USD Index many times in the past, so it could be the case that this level will keep the rally in check for some time. If not, and we see a confirmed breakout, then we’ll likely see another big rally – to the 92 level or perhaps even to the next retracement at 96.11.”
“However, we would first need to see the breakout and its confirmation. For now, we have just seen a move to this critical level.”
“While the situation in the precious metals market remains bearish, without a breakout in the USD Index, the possibility of another slide in the USD and a rally in gold, silver and mining stocks will be too big for us to think that opening short positions in the precious metals sector is justified from the risk to reward perspective.”
“The USD Index closed the week above the critical resistance level (the 38.2% Fibonacci retracement level), but it closed only a little above it and for just one day, so the breakout is not confirmed at this time.”
“Consequently, we don’t think that the move to 92 or higher is very probable for the USD Index at present. The implications for the precious metals market remain rather unclear at this time.”
Key Quotes
“The USD Index closed the week above 90 and also above the rising short-term resistance line, so the short-term breakout is confirmed. The implications for the next several days are bullish.”
“The USD Index has just encountered a major resistance line that it needs to surpass before a rally to 92 becomes very probable – the 38.2% Fibonacci retracement levels based on the entire 2002 – 2008 decline.”
“The Fibonacci retracements have worked for the USD Index many times in the past, so it could be the case that this level will keep the rally in check for some time. If not, and we see a confirmed breakout, then we’ll likely see another big rally – to the 92 level or perhaps even to the next retracement at 96.11.”
“However, we would first need to see the breakout and its confirmation. For now, we have just seen a move to this critical level.”
“While the situation in the precious metals market remains bearish, without a breakout in the USD Index, the possibility of another slide in the USD and a rally in gold, silver and mining stocks will be too big for us to think that opening short positions in the precious metals sector is justified from the risk to reward perspective.”
“The USD Index closed the week above the critical resistance level (the 38.2% Fibonacci retracement level), but it closed only a little above it and for just one day, so the breakout is not confirmed at this time.”
“Consequently, we don’t think that the move to 92 or higher is very probable for the USD Index at present. The implications for the precious metals market remain rather unclear at this time.”