U.S. Dollar index is signalling a deep fall of the EUR/USD

21 November, 2016

The U.S. dollar kept going up during last week. This happened due to the comments were given by the head of the FED, Janet Yellen, who said that the rate hike is about to happen this year and the market is ready for the FED to make it official in December. Taking a closer look at the U.S. dollar index, we cannot help but notice that the triangle is broken on the weekly chart. This means, that it is wise to wait for a stabilisation and possible growth of the American currency in the whole market range:

EUR/USD

In the monthly chart, we can see that there is a flag about to form for the Euro and the Dollar. It becomes quite clear that a parity is just a matter of time once this flag gets broken. The monetary policies on the both sides of the Pond come quite apparent as, there are upcoming elections in EU, which will take place 2017. Thus, we are not seriously considering the maximum goal concerning the flag within the range of 0.7200, even though this year has shown that anything is possible. Yet, the further this pair falls the less resistance there is:

In the last review, we’ve considered the level 1.0850 as a probable level to make sales. Now, we can surely start selling away from this level until the end of the week:

Sell Limit 1.0850, Stop Loss 1.0925, Take Profit 1.0605.

WTI

The fall of  Gold, Euro/Dollar and commodity currencies is defining the direction where Oil will move. Un until this point, the Oil got trapped next to the broken ascending channel. We are sticking with our main scenario and recommend to start selling «black gold» targeting the price of $42 per barrel.


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