Good Morning Traders!
Hope you have all had a great start to the week.
Monday was a bit of a slow day which showed low volatility, let’s see how the rest of the week plays out.
In this post i will be giving an update on the US Dollar Index 4 Hour timeframe as price continues to be squeezed.
So taking a look at the chart below we can see price remains below our descending trendline and remains above the ascending trendline. Price is being pushed into a corner where price will need to break one way or the other.
We have a support at the area of 12180 which is the previous retracement lower low, which is a higher timeframe higher low. If this area gets broken to the downside we would then expect to see the ascending trendline broken to the downside.
However if we see price rejected off the 12180 support we would look for price to then be pushed back to the upside, break the descending trendline and head into the 12210 zone. A break above the 12210 zone and we would expect so see price run bullish showing strength back to the area of 12275 with potential of rallying further.
For the moment it is patience with the Dollar until we see a breakout.
James at Technical FX112