Inverted Hammer on USDX: Time for the Dollar to Rally?

USDX Daily Chart

While I was scanning my charts for ’em sexy setups, I noticed an inverted hammer (the one that looks like an upside down marshmallow on a stick candle) on the daily chart of USDX. Being a proud graduate of the School of Pipsology, I know that this candle is usually seen as a bullish signal. But to make USDX even more bullish, the candlestick formed around a previous support and resistance level!

I haven’t found a setup on any dollar pair that I’m really confident in. So I’m just throwing this question out in the open: Do you think we’re going to see the dollar rally soon? Lemme know what your thoughts are!

  • Personalme

    It is a sign. But seems need more confirmations. Better late than sorry. No meat on head and tail, just the middle.

  • Ilya Gruntal

    It’s more of a bearish pattern, it needs confirmation for being bullish. If you open weekly charts at EUR/USD you’ll see strong bullish engulfing…

    I am personally expecting EUR/USD to get back to 1.35 level in next couple of weeks before continuing the downtrend, which may be Greece time to to default. Probably im too optimistic tho.

    As it goes for USDX, it looks like head and shoulders is going to be formed to me. Lets see a couple more days, we need to wait now for the week to close. Cheers.

  • Jacko

    I think it is just a case of buying above 80.050 and selling below 80.050. The price will go in some direction and 80.050 is a decision point for me.

  • Kioniboy84

    i think its too hard to tell at the moment which way the index is going to go, at first i was bullish until it broke 80.00 then i thought it was leaning more to bearish, now another rally…maybe we are entering a period of consolidation, the market is very unpredictable at the moment. Think we could see a rally from the dollar index and then head lower to 77… if not then the next bull rally should head past 82 into 83. Any ones guess!

  • Kioniboy84

    80.60 is more a key level, its the 38.2 retracement from 82.00 high to 79.70 low on daily, and the daily high of the 22nd which was 80.60.

  • Jacko

    I personaly prefer price levels that the price bounces from it few times than Fibonnaci Levels.

  • huck

    Looks like USDX is now below 80.00, and we didn’t get the confirmation that USD has turned bullish. What’s next?