USD US Dollar Index Daily Chart Oversold Falling Wedge Positive Dicvergence

The US dollar index daily chart is set to launch higher due to positive divergence, a falling wedge and oversold conditions. Considering the daily chart, a long position can be placed on the dollar right now scaling in expecting a bottom in the dark green circle. Keystone does not hold any trades on currency right now but a long play such as UUP or short against the FXE may be considered for this week. The long dollar trade is more attractive than short euro. The USD will likely bounce and rally over the next couple weeks but then likely roll back over to the downside again to honor the weakness on the weekly chart indicators.

So as the consensus of market participants lament early this week that the US dollar index will continue lower with no end in sight, the opposite is highly likely. The USD will likely print a low this week and stage a nice sharp recovery rally in this daily time frame. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.