
The USDX has witnessed increased upside in the week as well as a move over 110% from the average weekly range (over 26 weeks). USDX hasn't actually looked back since starting up the week near 76.70 level support and has been moving higher going forward as the dollar gained strength against all of the major currencies apart from the Japanese Yen.
- Friday experienced a corrective move to the downside, after a near doji candle on Thursday signalled a near term high or at the very least potential for a consolidation phase; this met with buying support at the 23.6% Fibonacci retrace of the current wave higher and closed only marginally lower on the day.
- The 79.83 area previous swing high is now firmly in sight but the 78.80 resistance pivot would need to be broken above beforehand.
- The doji high is seen as key during early trading and a failure to move above this point could see consolidation or even another corrective move lower.
- Any move to the downside could possibly find support around 77.50 (23.6% ret) in the near term followed by the previously formidable 76.70 area pivot which currently has 50% retrace confluence.
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