USDOLLAR Starts The Year Positively

Strong Start on Daily
FXCM's USDOLLAR basket started the new year off positively. The daily chart below shows a long blue candle, suggesting conviction by the bulls. Moreover, the price has moved out of the weak area, between the lower blue and lower red bands. The progress into the neutral region, between the blue bands, is considered a bullish development. It will be interesting to see if the USDOLLAR can end the week in the bullish region, between the upper blue and upper red bands.
Past Performance: Past Performance is not an indicator of future results.
Weekly Potential Higher Trough
The FXCM USDOLLAR basket weekly chart shows a higher trough followed by a higher peak (HT>T; HP>P). This is the classical definition of an uptrend. Since the higher peak was charted, the USDOLLAR has pulled back to its 38.2% Fibonacci level. This level looks to be providing support, and the next higher trough (HT?) in the series may be charting. Whilst not guaranteed, a weekly close above the aqua horizontal will give credibility to this scenario.
Past Performance: Past Performance is not an indicator of future results.
Featured Image by NikolayFrolochkin from Pixabay
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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