We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.82% Silver: 0.04% Gold: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/O3RaJ4mr4W
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.79% 🇳🇿NZD: 0.68% 🇬🇧GBP: 0.46% 🇨🇦CAD: 0.17% 🇨🇭CHF: 0.07% 🇯🇵JPY: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UMZm9sOyoN
  • GBPAUD down 25 big figures since April 2...will today's EU/UK briefing by Michel Barnier (12:00 BST) halt or accelerate the sell-off? #gbpaud #sterling #euuktalks https://t.co/QCTg3VugSj
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.17% France 40: 1.08% Wall Street: 0.92% US 500: 0.80% FTSE 100: 0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MwxVWpqxb3
  • EU's Barnier scheduled to speak at 1200BST following EU-UK trade talks
  • The #Dow Jones, #Nasdaq and S&P 500 have continued to melt higher in recent days even as bullish catalysts seem to sputter out. Get your #equities market update from @PeterHanksFX here: https://t.co/6QGkvWJ20E https://t.co/3ysgLGSUIJ
  • Heads Up:🇮🇳 Monetary Policy Meeting Minutes due at 05:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 76.2 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Coincident Index Prel Actual: 81.5 Expected: 90.3 Previous: 88.8 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 72.6 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
USDOLLAR into Resistance- Rally at Risk Sub 11989

USDOLLAR into Resistance- Rally at Risk Sub 11989

2016-05-19 17:08:00
Michael Boutros, Strategist
Share:
  • USDOLLAR rally approaching near-term resistance objectives
  • Updated targets & invalidation levels
  • Check out FXCM’s Forex Trading Contest!

USDOLLAR Daily

USDOLLAR into Resistance- Rally at Risk Sub 11989

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: The Dow Jones FXCM U.S. Dollar Index (Ticker:USDOLLAR) is approaching a key near-term resistance zone at basic trendline extending off the 2016 high. Note that this is backed closely by the 50% retracement of the yearly range and the median-line extending off the 4/18 low at 11989. The rally at risk just below this region and we’ll be looking for an exhaustion high to offer a near-term pullback in price. Initial support rests with the lower parallel extending off the 5/11 low with broader bullish invalidation level set to 11830.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

USDOLLAR 30min

USDOLLAR into Resistance- Rally at Risk Sub 11989

Notes: Momentum divergence into this resistance region leaves the immediate topside bias vulnerable heading into the close of the week. Initial support rests with the lower median-line (blue) of the ascending structure with a break below the weekly opening-range low at 11897 to trigger are larger scale pullback in the greenback. Such a scenario targets support objectives lower at 11855 & 11822/30.

A breach / close above 11989 would be needed to validate the next leg higher targeting the 200-day moving average at 12038 & the key 61.8% retracement of the 2016 range at 12064.Keep in mind we have existing home sales on tap tomorrow with durable goods orders, the second read on 1Q GDP & the personal consumption expenditure (PCE) highlighting the U.S. economic docket next week. Remember that the PCE is the Fed’s preferred gauge of inflation and as such possess more significant event risk for the dollar crosses. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

Looking for trade ideas? Review DailyFX’s 2016 2Q Projections!

Relevant Data Releases

USDOLLAR into Resistance- Rally at Risk Sub 11989

Other Setups in Play:

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

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

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

DISCLOSURES

News & Analysis at your fingertips.