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
Wall Street
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
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eaA8ZI6DVu
  • Chinese property development company Sinic Holdings (2103) - Down 87%...@DailyFXTeam #contagion #Evergrande https://t.co/h5mfwqGASZ
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
US Dollar Index Weekly Price Outlook: DXY Do or Die into NFP

US Dollar Index Weekly Price Outlook: DXY Do or Die into NFP

Michael Boutros, Strategist

In this series we scale-back and 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 1.2% from the yearly highs registered last month with the decline now approaching support near the April lows. These are the updated targets and invalidation levels that matter on the DXY weekly price chart heading into tomorrow’s US Non-Farm Payroll release. 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

US Dollar Index Weekly Price Chart (DXY)

US Dollar Index Price Chart - DXY Weekly - USD Outlook

Notes: In my April US Dollar Weekly Price Outlook we noted that DXY had, “broken above the yearly opening-range and while the broader outlook remains weighted to the topside, the immediate advance may be vulnerable IF prices fail to close the week above the 2011 parallel.” Price failed to close above this slope for nearly five weeks with DXY turning lower to break below the May lows yesterday.

Initial resistance now stands back at the 61.8% retracement of the 2017 decline at 97.87 backed by the 2011 parallel (red)- a breach there would shift the focus towards the slope extending off the 2017 high around the 99-handle. Look for initial support along the September trendline (blue) / April lows around ~96.75 with a break / close below confluence support around the yearly open at 96.14 needed to suggest a larger reversal is underway here. Subsequent support objectives at the yearly lows at 95.03 & the 38.2% retracement at 94.51.

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

Bottom line: A reversal in the US Dollar Index has taken price back towards multi-month slope support – watch the weekly close. A break lower would expose key confluence support at 96.14- look for a bigger reaction there IF reached. From a trading standpoint, look to reduce short-exposure / lower protective stops on a move towards the lower parallel near 96.70s. The possibility of a near-term exhaustion rebound remains heading into NFPs while above this threshold. Ultimately a larger recovery should prove corrective and may offer more favorable entries targeting a break lower.I’ll publish an updated DXY scalp setup once we get further clarity in near-term price action.

---

Key US Data Releases

US Data Releases - US Dollar

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

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

Follow Michael on Twitter @MBForex

https://www.dailyfx.com/free_guide-tg.html?ref-author=Boutros

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

DISCLOSURES