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USDOLLAR Rebound at Risk Ahead of CPI- 11905 Resistance

USDOLLAR Rebound at Risk Ahead of CPI- 11905 Resistance

Michael Boutros,

Talking Points

  • USDOLLAR is eyeing near-term confluence resistance head of U.S. CPI
  • Near-term bearish invalidation at 11905
  • Updated targets & invalidation levels


Chart Created Using FXCM Marketscope 2.0

Technical Outlook: The Dow Jones FXCM U.S. Dollar Index (Ticker: USDOLLAR) has been trading within the confines of a descending median-line formation off the January 21st high with the recent rally off the lows targeting confluence resistance at 11905- a region defined by the upper median-line parallel and a basic 23.6% retracement of the late February decline. We’ll reserve this level as our bearish invalidation mark heading into tomorrow’s CPI print with a breach above 11919 shifting the focus towards subsequent resistance objectives at 11952 & the 38.2% retracement at 11964.

Note that a near-term embedded median-line formation off the lows has continued to define price action well. Interim support rests at 11861 backed by the 2016 low-day close at 11830. A break below this region is needed to validate the resumption of the broader downtrend with such a scenario targeting the lows at 11809 backed by the 76.4% retracement at 11793. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

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Relevant Data Releases This Week

Other Setups in Play:

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---Written by Michael Boutros, Currency Strategist with DailyFX

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.