USDX: Signs of double topping

USDX: Signs of double topping

The USDX has declined within three waves after placing 100.40 significant peak and it is currently maintaining levels below SMA20 and SMA50 along with negative crossover as seen over daily studies.

This moving averages overlap is the first one caught on the daily graph since overlapping positively in the last week of July 2014.

usdx-29-04-2015-top

In the interim, Parabolic SAR covered the movements from the topside as well, affirming the bearish prospects.

RSI14 stability below the value of 50.00 is a negative factor; although, approaching the oversold territories, marked by 30.00 may cause some kind of fluctuation.

To summarize this, another daily closing below 96.25-96.40 will actuate traders to sell the U.S. dollar, aiming to challenge 93.70 regions.

Only coming back above the resistance confluence of 97.80 will negate.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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