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
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian Ringgit. The Philippine Peso gained. What does USD face from here? Find out from @ddubrovskyFX here: https://t.co/U8VGdJPIST https://t.co/67Qq4n8Tet
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • Heads Up! Will be starting soon. I will be resuming last week's discussion on equities to see what positioning can say about the prevailing trends, signup below https://t.co/5WGeehCLdh
  • 🇯🇵 JPY Trade Balance - BOP Basis (Yen) (FEB), Actual: ¥1366.6b Expected: ¥1215.0b Previous: -¥985.1b https://www.dailyfx.com/economic-calendar#2020-04-07
  • 🇯🇵 JPY Machine Orders (YoY) (FEB), Actual: -2.4% Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • 🇯🇵 JPY Machine Orders (YoY) (FEB), Actual: 5% Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • Australia outlook cut from stable to negative by S&P - BBG #AUD
  • #RBNZ Assistant Governor Christian Hawkesby: - The central bank is "very open" to changing the size of its QE program - There is a limit to how much of the bond market the RBNZ can purchase - Monetary authorities open to increasing QE in a "rapidly evolving situation" - BBG #NZD
  • Heads Up:🇯🇵 JPY Machine Orders (YoY) (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: -3.0% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-04-07
  • Heads Up:🇯🇵 JPY Trade Balance - BOP Basis (Yen) (FEB) due at 23:50 GMT (15min), Actual: N/A Expected: ¥1213.6b Previous: -¥985.1b https://www.dailyfx.com/economic-calendar#2020-04-07
Weekly Technical Perspective on the US Dollar (DXY) Ahead of FOMC

Weekly Technical Perspective on the US Dollar (DXY) Ahead of FOMC

2018-09-21 16:30:00
Michael Boutros, Strategist
Share:

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The US Dollar Index is down more than 3% from the yearly highs with the greenback now testing the first major support hurdle in price. Here are the key targets & invalidation levels that matter on the US Dollar Index (DXY) weekly chart.

New to Forex Trading? Get started with this Free Beginners Guide

US Dollar Index Weekly Price Chart (DXY)

US Dollar Index (DXY) Price Chart - Weekly Timeframe

Notes: Last month we highlighted that the Dollar Index was, “testing confluence slope resistance around 96.50s. Note that this region is defined by the parallel of the 2011 trendline and broader downtrend pitchfork resistance (38.2% line) - the immediate advance may be vulnerable below this region near-term but the focus remains higher while above the 2016 low-week close at 93.89.” Price registered a low at 93.81 this week before rebounding.

The immediate focus remains on confluence support at 93.65/89- note that the 38.2% retracement of the yearly range also converges on the median-line of the multi-year pitchfork we’ve been tracking off the 2015 / 2017 highs. Interim resistance stands with the 200-week moving average at 95.64 with bearish invalidation now set to the high-week close at 96.09. A break lower from here targets 93.19 backed by 92.62/83 (50% retracement / 52-week moving average) and the 2018 open at 92.28.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: The US Dollar tested confluence support this week and could see some sideways to higher price action in the days ahead.Note that a break below the RSI support trigger extending off the yearly lows highlights the risk for further losses. That said, from a trading standpoint, I’m looking for a recovery to fade with a break / close below 93.65 needed fuel the next leg lower in price. Keep in mind that we have the FOMC interest rate decision on tap next week- expect volatility.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

US Dollar Event Risk Next Week

USD Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

Learn how to Trade with Confidence in our Free Trading Guide

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

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

https://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2017/08/04/Foundations-of-Technical-Analysis-Identifying-Confluences-Opening-Ranges.html?ref-author=Boutros

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

DISCLOSURES

News & Analysis at your fingertips.