Dollar Index Price Analysis: Tuesday’s marubozu shows bull bias

  • The dollar index carved out a bullish marubozu candle on Tuesday. 
  • The greenback eyes trendline hurdle as the bullish sentiment looks quite strong. 

The dollar index, which gauges the greenback’s value against major currencies, rose 0.5% on Tuesday, forming a green marubozu candle. 

A marubozu is a one-candlestick pattern with negligible or no wicks and a big body and signals significant strength. 

A bullish or above-50 reading on the relative strength index accompanies the marubozu candle. Besides, the MACD histogram is printing higher bars above the zero line, a sign of the strengthening of upward momentum. 

As such, the greenback looks set to test resistance at 94.40. That level is the 23.6% Fibonacci retracement of the sell-off from 102.99 to 91.75. 

A close under Tuesday’s low of 93.00 would invalidate the bullish setup. At press time, the dollar index is seen near 93.50.

Daily chart

Trend: Bullish

Technical levels

 

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