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
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
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
Bitcoin
Mixed
More View more
Real Time News
  • My my. That new Ferrari Roma...
  • $USDCAD recaptured the 2012 trend-line last week, and since then it has continued to trade higher, but the rally may get stopped in its tracks soon. Get your USD/CAD technical analysis from @PaulRobinsonFX here: https://t.co/kGYhbvYAHM https://t.co/caBKUs6i6f
  • South China Morning Post reports that the US is likely to extend limited export waivers for Huawei $ES_F $USD $TNX
  • $EURUSD Daily Pivot Points: S3: 1.0958 S2: 1.0983 S1: 1.0996 R1: 1.1021 R2: 1.1033 R3: 1.1058 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @DeItaOne: FEDERAL RESERVE CHAIR POWELL SAYS U.S. TRADE TENSIONS HAVE CONTRIBUTED TO MANUFACTURING RECESSION THIS YEAR
  • The 2s10s US yield curve (spread between the 2 and 10 year Treasury Yield) is at 23.273, down from it's recent high of 27.417 on October 12th https://t.co/xoew9EPxK9
  • The Dow's past 9-day trading range is the smallest on a historical basis since Jan 2, 2018. Holiday-level conditions. Perfect time for a catalyst... https://t.co/m3TLnI7X3P
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.38% 🇬🇧GBP: 0.24% 🇨🇭CHF: 0.19% 🇨🇦CAD: 0.01% 🇳🇿NZD: -0.47% 🇦🇺AUD: -0.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/M9CEfeQetJ
  • Waiting for the Section 232 auto tariff decision due today like... https://t.co/9K58s23VcT
  • RT @FxWestwater: Powell, Fed Officials Highlight US Economy, Debt & Repo Strains Get your market update @DailyFX #FOMC $DXY #USD #Fed…
US Dollar Price Outlook: USD Recovery Play – DXY Trade Levels

US Dollar Price Outlook: USD Recovery Play – DXY Trade Levels

2019-10-23 15:30:00
Michael Boutros, Technical Strategist
Share:

The US Dollar plummeted more than 2.5% off the yearly/monthly high before rebounding and we’re on the lookout for exhaustion on this recovery in the days ahead. These are the updated targets and invalidation levels that matter on the DXY price charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Sterling price setup and more.

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

US Dollar Index Price - DXY Daily

US Dollar Index Price Chart - DXY Weekly - USD Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; DXY on Tradingview

Technical Outlook: In my latest USD Dollar Weekly Price Outlook we noted that DXY had, “turned from BIG resistance this month with the decline now testing multi-year slope support…. look for exhaustion on a recovery while below the high-week close with a break lower likely to fuel accelerated losses in the greenback.” Price broke below the 2018 trendline last week with the recent recovery now eyeing resistance at former trend support.

Initial resistance stands at 97.71/87 – a zone of interest for possible exhaustion. Broader bearish invalidation now lowered to the 38.2% retracement at 98.11. A break below last week’s low keeps the focus on the 97-handle and more significant support at the 61.8% retracement at 96.80- look for a bigger reaction there If reached.

US Dollar Index Price - DXY 120min

US Dollar Price Chart - DXY 120min - USD Trade Outlook - Technical Forecast

Notes: A closer look at US Dollar price action shows DXY trading within the confines of a near-term descending pitchfork formation extending off the monthly highs with the index rebounding off confluence support at the lower parallels early in the week. Look for exhaustion heading into the upper parallels with a break below 97.21 needed to fuel the next leg lower in price.

Why does the average trader lose? Avoid these Mistakes in your trading

Bottom line: The dollar is rebounding off near-term downtrend support and we’re on the lookout for exhaustion just higher. From at trading standpoint the risk remains weighted to the downside while within this formation– look for short-entries / fade strength on a test of the upper parallel with a break below the weekly opening-range lows needed to keep the immediate short-bias viable. A close above 98.11 would ultimately be needed to shift the broader focus back to the topside.

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

Active Trade Setups

- Written by Michael Boutros, 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

News & Analysis at your fingertips.