Technical Buy Signal In The U.S Dollar

Above is a daily chart of the U.S. Dollar and in the lower panel is the stochastic oscillator. The first thing that stands out to me on this chart is that previous resistance has now turned into support. Last week the dollar tested this support level and it appears to be holding.

The stochastic oscillator has turned up from an oversold area giving a buy signal. Just looking at the overall price structure you can see that this is the first higher low which is usually a good reward to risk ratio trade if looking to get long. I first became bullish on the greenback at the beginning of last month and you can read that post by simply clicking on the following link.