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04.01.202216:58 Forex Analysis & Reviews: 2022 starts with Dollar strengthening.

2021 ended with the Dollar under pressure and the Dollar index showing reversal signals. Technically short-term trend in the Dollar index remains bullish as price continues making higher highs and higher lows, as price still respects the key upward sloping trend line support.

Exchange Rates 04.01.2022 analysis

Blue line- support

Green lines - Fibonacci retracements

The Dollar index made a pull back the last couple of sessions of 2021 pointing to a bigger reversal. However price continues to respect the blue support trend line. In order to get a confirmed reversal, bears will need to break below the blue trend line support at 95.05. Price has so far retraced more than 50% of the entire decline of 2020. We successfully predicted the bullish reversal from the 89-90 price area. The area between 96.30-97.50 is key resistance and it is important to see how the market reacts at these levels. The upward move from 89.50 has paused around the 50% retracement. There is no confirmation of a reversal yet. Bears need to show more signs of strength.

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