FX traders seem poised to take dollar even higher
Nov 21 (Reuters) -FX traders will likely take the U.S. dollar higher in the days and weeks ahead as speculative long positions seem to be in good shape and the daily chart points to gains.
The dollar paused its climb on Thursday as traders awaited more clarity on U.S. President-elect Donald Trump's proposed policies and sought to second-guess the prospects of less aggressive interest rate cuts from the Federal Reserve.
However, the technical outlook points to much bigger dollar gains to come. If the USD index, which tracks the dollar against a basket of six major currencies, breaks above the November 107.07 high, itwould unmask the 2023 107.34 peak initially and then the 108.00 psychological level.
The USD index fourteen-day momentum reading remains positive, reinforcing the overall upside potential of the market structure, as does the bullish alignment of the daily tenkan and kijun lines.
However, if the USD index suffers a sustained break under Wednesday's 106.07 low itwould warn of a top and a subsequent reversal lower.
For more click on FXBUZ
Daily Chart: https://tmsnrt.rs/4i2CXkv
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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