Overall Trend:
7-Day Trend: Strong
14-Day Trend: Very Bullish
Short-Term Price Action Reading (1 to 10 Trading Days):
Do Not Enter Long Here: The risk-reward is considered unattractive at this point.
Medium-Term Price Action Reading (2 to 4 Weeks):
Aggressive Buying but Overbought: The index is showing aggressive buying, but it is also overbought.
Expect Consolidation or Minor Retracement: Due to the overbought condition, a period of consolidation or a minor retracement is anticipated.
Long-Term Price Action Reading (5 to 8 Weeks):
Aggressive Buying, But Do Not Chase: The trend remains bullish, but it's advised not to chase the price.
Look for Overshoot or Failure to Hold Prior Session Range Highs to Short-Sell Back to the 8-EMA: To identify potential short-selling opportunities, traders should look for instances where the price overshoots or fails to hold the previous session's range highs.
Key Takeaways:
The U.S. Dollar Index is currently in a strong bullish trend, both in the short and medium term.
However, the overbought condition suggests a potential consolidation or minor retracement in the near future.
Traders are advised to exercise caution and avoid chasing the price at this time.
Short-selling opportunities may arise if the price overshoots or fails to hold previous session highs.
Lester Davids
Analyst: Unum Capital
Note Added on 03 January 2025 at 12h20
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