Upcoming TeleTrade Webinar by Marios Athinodorou:
Market Psychology- Trade without Fear, Thursday 15/3 at 15:00 (GMT+3)
Sign up here.
US dollar will probably continue its downtrend on the fear of a potential trade war caused by the US tariffs annulment on imported steel and aluminium.
Despite the fact that the fear of a trade war starts fading away, some elements on the technical side are still there and could support the continuation of the downtrend. At the moment, the dollar index is not showing pullback elements, as the US dollar continued going downwards during the Asia morning session of the 13th March.
It should be taken into consideration the US Core Consumer Price Index (CPI) so that to find clues about the U.S. inflation rate. These data could give us some hints on how the Federal Reserves (FED) would plan to act.
US Dollar Index Technical View
On the daily timeframe of the technical view, it could be observed that the downtrend is still strong and that there is a thick Kumo. Furthermore, we can see that there is strong resistance. On the contrary, the price crossed the Tekan Sen and Kijun Sen lines, as well as, the Chickou span in the price.
We may see that a reversal price found resistance on the Tekan Sen line and started heading down. However, these elements could be an indication of an early potential reversal, given that we break out of the Kumo to the upside.
The chart below shows how this opportunity could be potentially used, provided that the price breaks the Kijun Sen and the Tekan Sen lines, and forms a bearish down formation.
About the author:
Marios Athinodorou is TeleTrade’s market analyst and commentator. Apart from being an experienced trader, Marios is an advanced technical analyst and is interested in trading psychology. He has 7 years of trading expertise in Forex and CFDs, providing insights to share with all kinds of traders, from beginners to experts.
Among others, Marios is delivering weekly trading webinars. Sign up to upcoming webinars, here.