Friday, December 16, 2016

USD US Dollar Index Weekly Chart; Overbot; Negative Divergence Developing; Upper Band Violation

The dollar chart continues to price-in the Fed move this week. The dollar popped higher along with Treasury yields after Fed Chair Yellen, Queen of the Doves, sprouts a couple of hawkish feathers. The USD is running up the top standard deviation band and needs to return to 97.80 (as the weeks play out), and rising, at a minimum. Price is very overextended to the upside.

The red lines show neggie d in the long couple-year time frame and in the short term time frame although the RSI and MACD line show very short term strength. Thus, price should retreat for a week or two (which is agreeable with the daily chart), then bounce back up for matching or higher highs for the week or two after that, then likely roll over from there trending sideways to sideways lower for the weeks and months ahead disappointing the major consensus that all agree the dollar will continually rise from here. The ADX is sitting in the basement indicating that the big move higher in the dollar since summer time is not a strong trend higher. 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.

Note Added Saturday, 12/17/16: USD is at 102.92. The high last week was 103.54.

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