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FxWirePro: DASH/USD pauses downside, good to go long on break above 5-DMA

  • DASH/USD pauses 5 consecutive sessions of downside.
  • The pair trades 4.83% higher on the day at around 1175.133 at the time of writing.
  • Downside has held minor trendline support at 1120 levels. We see minor weakness on break below.
  • Next major support below 1120 lies at 20-DMA at 1008.85. Violation there could see test of 850 (major trendline) and then 50-DMA at 728.
  • Technical studies are not supportive of major downside. RSI holds above 50 levels and is turning north.
  • ADX has also not been supportive of the downside, we still see +ve DMI dominance.
  • 5-DMA is immediate resistance on the upside and break above could see resumption of upside.

Support levels - 1100 (38.2% Fib retrace of 252.50 to 1625 rally), 1008 (20-DMA), 850 (trendline)

Resistance levels - 1178.71 (5-DMA), 1250 (Dec 17 high), 1301 (23.6% Fib)

Recommendation: Watch out for break above 5-DMA to go long, SL: 1080, TP: 1250/ 1300/ 1420.

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