US Dollar Index: Downside bias within defined range – UOB
United Overseas Bank’s (UOB) Quek Ser Leang notes that the USD Index bias has shifted to the downside after failing to break above the weekly Ichimoku cloud and instead plunging below the 55-week EMA.
United Overseas Bank's analyst, Quek Ser Leang, has observed a shift in the USD Index bias to the downside following its failure to surpass the weekly Ichimoku cloud. Instead, the index has plummeted below the 55-week Exponential Moving Average (EMA). However, the relatively flat EMAs suggest that any downward movement should remain within the range of 97.63 to 101.64.
This range is defined by May's low and last week's high. The analyst noted that a break above the weekly Ichimoku cloud, previously at 103.20, could have led to further upside in the coming months. However, this positive setup has been nullified by the breach of the 55-week EMA. While the decline has tilted the bias towards the downside, flat EMAs indicate any further decrease should stay within the aforementioned range.
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