News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
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
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
More View more
Real Time News
  • RT @axios: Sen. Joe Manchin is offering progressives a trade: He'll vote for their cherished social programs if they accept strict income…
  • Heads Up:🇨🇳 House Price Index YoY (SEP) due at 01:30 GMT (15min) Previous: 4.2% https://www.dailyfx.com/economic-calendar#2021-10-20
  • RT @BrendanFaganFx: Silver Price Outlook: XAG/USD Gains on US Dollar Weakness, Broad Risk-on Sentiment $XAGUSD #Silver Link: https://t.c…
  • Looks Democrats may be close to a deal $SPX $USD $XAUUSD https://t.co/ds5UIeke3Q
  • The US Dollar may be at risk against ASEAN currencies as an energy crunch benefits the Indonesian Rupiah. USD/THB and USD/PHP face loosening Covid restrictions. All eyes on China GDP. Get your market update from @ddubrovskyFX here:https://t.co/RRaQZFGQKp https://t.co/RGMnxTCs46
  • USD/MXN has plummeted towards critical technical support following the recent pull-back. Get your market update from @DColmanFX here:https://t.co/H9trN4byPX https://t.co/rZ332BNHZO
  • 🇦🇺 Westpac Leading Index MoM (SEP) Actual: -0.02% Previous: -0.27% https://www.dailyfx.com/economic-calendar#2021-10-20
  • Hold your breath. Bitcoin is a sneeze away from tagging an intraday record high. $BTCUSD https://t.co/dT6uewVqTR
  • 🇯🇵 Balance of Trade (SEP) Actual: ¥-622.8B Expected: ¥-519.2B Previous: ¥-637.2B https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇦🇺 Westpac Leading Index MoM (SEP) due at 00:00 GMT (15min) Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-10-20
US Dollar Weekly Price Outlook: DXY Rally at Risk into Yearly Highs

US Dollar Weekly Price Outlook: DXY Rally at Risk into Yearly Highs

Michael Boutros, Strategist

The US Dollar Index is trading just below the yearly highs with the advance now targeting a critical long-term Fibonacci resistance confluence just higher. Here are the key targets & invalidation levels that matter on the US Dollar Index (DXY) weekly chart. Review this week's Strategy Webinar for an in-depth breakdown of this setup and more.

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

DXY Weekly Price Chart

US Dollar Index Price Chart - DXY Weekly

Notes: In my previous US DollarWeekly Technical Outlook we noted that the index was approaching resistance at the 2018, “high-week close a 97.42 with a breach above key resistance at 97.87 needed to fuel the next leg higher in the Dollar.” Price has continued to respect this threshold on a weekly close basis with the greenback trading just below this zone ahead of the New York close on Friday (note the pending RSI resistance trigger in momentum).

Initial weekly support rests with the 200-week moving average at 95.90 and is backed closely by the low-week close at 95.66. Ultimately a break below the 2018 support line / 2019 opening-range lows at 95.03 is needed to suggest a more significant reversal is underway. A topside breach above the key 61.8% retracement at 97.87 exposes subsequent topside objectives at the highlighted trendline confluence around 99.30s.

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 Index is once again testing BIG resistance into the start of 2Q trade. The immediate advance remains vulnerable while below confluence resistance at 97.87. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops. Looking for possible price exhaustion / reaction on a test higher for guidance- ultimately a close above is needed to keep the long-bias viable targeting slope resistance.

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

Relevant US Economic Data Releases

US Economic Data Releases

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!.

Previous Weekly Technical Charts

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

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

DISCLOSURES