The US Dollar Index caught a strong bullish bid this morning, surging up away from our known Fibonacci Confluence target.
What was it and what should we be watching now? Let’s see clearly:
First, take a moment to read our prior post “Dollar Drops to Fibonacci Target.”
I highlighted the confluence of the 38.2% Fibonacci Retracement with the 100 simple Round Number target.
As expected/planned, price surged up away from this level as buyers regained the edge.
We saw a somewhat similar pattern – of a strong rally into shallow pullback to a Fibonacci Target – for the S&P 500.
We’ll continue to focus on the bullish impulse and target into the prior high while above 100.
Otherwise, should the alternate “breakdown” thesis take place under 100, we have two Fibonacci Targets: 99.50 and 98.90.