USDX reached resistance target perfectly, potential for reversal

6 Nis 2018

USDX reached our first resistance perfectly at 90.52 (horizontal swing high resistance, 61.8%, 100% Fibonacci extension, Elliot wave structure). A strong reaction might occur below this level, pushing price down to our major support at 89.96 (horizontal swing low support, 38.2% Fibonacci retracement) which coincides with our short term descending resistance-turned-support line.

Stochastic (55,5,3) is also approaching our major resistance and a reaction off this level might be a good precursor of a potential drop in price.

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