Long

Back above the 200 days MA - Breakout coming?

used USD weakness to climb above its 200 SMA line again, closing below the important 1.14 resistance zone.
(Dollar Index) is sitting on top of its daily 200 SMA line, a support line that will decide whether USD will resume its strength or start a deeper correction move. Thursday's Fed's announcement should determine the fate of the USD for the near future and it will probably determine whether will manage to break out of 1.14 or not.

In this week's newsletters, I tried to look at potential targets for breakout and from the weekly chart we see that 1.18-12 is a weekly structure zone that may be where will head to in case of a breakout.
Another potential target, longer term target, is the 1.24 zone (see weekly chart).

Now that closed above the 200 SMA line again, the critical support zone shifts from 1.1 to 1.12.

I've marked two possible trading scenarios that I intend to monitor during Fed's week. Both of them bullish, one includes a small pullback towards 1.12,

The potential target zone is 1.18 and the completion of the bearish Crab

This analysis is part of the Weekly Markets Analysis newsletters

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