DOLLAR.IDX / USD 4H: the decline could continue
The dollar index, which measures the US dollar against a basket of major currencies, has declined 5.17% since mid-March. The exchange rate tested the simple moving average over 200 periods on April 1.
The currency pair is trading near the bottom border of a 100.17 ascending channel model.
If the ascending channel continues, bulls could push up the price during next week’s trading sessions.
However, technical indicators suggest that a potential break through the lower limit of the channel model could occur during this session.
GBR.IDX / GBP 4H chart: a breakout occurs
The UK100, which measures the 100 best performing stocks on the London Stock Exchange, has been listed since the end of March. The single moving average over 100 periods supported the pair during this period.
All else being equal, the GBR.IDX / GBP pair may rise slightly in subsequent trading sessions. The possible target for bullish traders would be close to the 6400 area.
However, a resistance level formed by the SMA from 200 to 5849.5 could provide resistance for the UK 100 index in the short term.