The US Dollar Index failed yet again at trendline resistance, near the 50-day MA. Wednesday's rejection highlights the inability of the Greenback to sustain a rally for more than four trading days. However, while the key fibonacci retracement at 79.47 (61.8% of 78.37-81.46) remains intact, there is a high probablility that 80.75 (current location of trendline & 50-day MA) will be breached.
The EUR/USD remains mired within a tight range between two key retracement pivots (1.3730 & 1.4170). 4-hour bullish MACD triggered a rebound off 1.3839, where the 50-day MA and a fibonacci retracement reside (78.6% of 1.3730-1.4170). The medium-term bullish structure remains intact while price-action and weekly RSI remain above 1.3730 and 52, respectively.
There are several reasons why crude oil (CLQ9) is due for a period of consolidation after such a relentless sell-off. First, it has completed a double top measured move (measured from the neckline). Second, it has paused at a key fibonacci retracement (61.8% of 50.50-73.67). And lastly, 4-hour studies are oversold and bullish divergence MACD indicate possible exhaustion.
