DXY Do or Die – Trendline Break to Seal the Fate
- DXY responds to resistance- pullback eyeing near-term support targets
- Updated targets & invalidation levels
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Technical Outlook:The DXY is responding to slope resistance extending off April highs (red) with several other technical considerations converging just higher at 101.80-102.05. The risk is weighted to the downside while below this threshold with daily support seen at the lower parallel (currently around 100.55/60) & critical support at 100.02/20.
Notes: A closer look at price action highlights today’s rebound off near-term confluence support at 100.80/89- a region defined by the 100% extension, the weekly open and median-line support. Initial resistance stands at 101.24 with a break lower targeting 100.72 & 100.55. From a trading standpoint, I’ll favor fading strength while below today’s high with a break below this formation needed to suggest a more significant high is in place for the index. Such a scenario eyes subsequent objectives
Relevant Data Releases
Other Setups in Play:
- USD/JPY Decision Time- 112.30 Line in the Sand
- Crude Prices Flirt with Key Resistance- 2017 Opening Range Intact
- USD/CAD Constructive Above 1.3070 Ahead of Canada Retail Sales
- EUR/NZD Targeting Resistance- Monthly Range Break to Validate Outlook
---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.