• US DOLLAR INDEX: Forceful bullish break above the range and downtrend line
• Causing EUR/USD, GBP/USD to break down and USD/JPY to break up
• US DOLLAR INDEX should be targeting the 100.00 previous high next
US DOLLAR INDEX : Range breakout to the upside after 25 weeks of consolidation
The dollar index has been ranging since 15/May/15 but the buyers succeeded in breaking price higher to the upside last week due to the better than expected employment data in US. The Nonfarm Payrolls, unemployment rate and average hourly earnings all beat expectations significantly which gives the market more hope of a rate hike in December.
Price managed to close above the range and downtrend line significantly last week and this bullish surge should be able to move price higher to test the 100.00 psychological round number next where some rejections may occur. If the bullish strength remains, price could be heading for 102.00 resistance thereafter.
The buying pressure in the US DOLLAR INDEX subsequently caused the EUR/USD, GBP/USD to break down and USD/JPY to break up. (Read Report)