USDOLLAR Rebound at Risk Ahead of CPI- 11905 Resistance
- 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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- A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders remain largely net long the USD vs nearly every major save the British Pound, suggesting that the greenback remains at risk heading into the release tomorrow.
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Relevant Data Releases This Week
Other Setups in Play:
- AUDJPY Rebound Eyes Key Near-term Resistance- Bearish Sub-84.72
- EUR/AUD Reversal Testing Initial Support - Bearish Sub-1.5075
- GBP/USD Scalp Targets Ahead of UK CPI- Bullish Invalidation 1.4175
- Webinar: USD in Free Fall- Key Crosses in Focus this Week
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---Written by Michael Boutros, Currency Strategist with DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.