USD Index Looking Top Heavy

Sitting at a 7-day low a break below 87.22 confirms a Double Top to target 86.10.

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USD Index

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Friday’s intraday 4-year high didn’t last very long before closing the session with a Bearish Outside day. The weekly charts have also produced a Rikshaw Man Doji to suggest weakness at the highs. Asia trading has since seen a bearish follow though and sits at a 7-day low.

87.22 has so far held as support but a break below here confirms a Double Top to project an approximate target at 86.10. There are several technical levels of support here which makes it a viable place for the correction to stall. At this stage I suspect this is merely a correction and for the bullish trend to remain intact on D1.

Whilst the US Dollar continues to correct then we can expect AUD, NZD and EUR to remain supported and favour intraday bullish setups. If we do build a base then we can switch to a higher timeframe such as D1 to seek bullish setups in favour of the US Dollar.

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