The DXY US Dollar Index has gapped into interim resistance following an intense round of FEDspeak seemingly aimed at boosting expectations of a March hike. Chance of a March hike was less than 33% just a few weeks ago, but both voting and non-voting members have embarked on a full blown communications offensive over the past week, pushing expectations up above 60% - The FED has never hiked when market expectations were below 70%.
The index has cleared a major resistance confluence zone and looks set to continue higher over the coming weeks. Interim resistance lies just above here in the 102 round region, marked by Monday's high of 101.97 and the 61.8 fib at 102.07. A breach of there would target zone confluence near 103 round, with the 78.6 fib at 102.84 and the January 11 high at 102.95.
The 101.40 - 101.80 zone, marked by the broken wedge top and 50% level at 101.53, should offer solid support over the coming sessions. A breach of 101.40 would suggest a false break and invalidate our bullish bias.
The index has cleared a major resistance confluence zone and looks set to continue higher over the coming weeks. Interim resistance lies just above here in the 102 round region, marked by Monday's high of 101.97 and the 61.8 fib at 102.07. A breach of there would target zone confluence near 103 round, with the 78.6 fib at 102.84 and the January 11 high at 102.95.
The 101.40 - 101.80 zone, marked by the broken wedge top and 50% level at 101.53, should offer solid support over the coming sessions. A breach of 101.40 would suggest a false break and invalidate our bullish bias.
