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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
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
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here:
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection -
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:
  • US #COVID19 cases hit a record for a second consecutive day -BBG
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:
  • The US Dollar gained, pushing USD/SGD to break higher. However, USD/IDR may be looking at losses ahead. USD/MYR struggled to breach the March trendline. USD/PHP could rise.Get your market update from @ddubrovskyFX here:
  • The #DowJones and #SP500 have as of today averaged: -2.16% & 1.43% 3-months and 1-year before #Election2020 respectively What could this mean for the incumbent president/Trump next week? 👇
U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

2017-11-21 14:30:00
James Stanley, Strategist

Talking Points:

- The U.S. Dollar has trickled into a key zone of prior support/current resistance.

- Retail sentiment has normalized in many USD-pairs, although EUR/USD remains stretched beyond the -1.5 figure. Click here to access IG Client sentiment.

- Looking for trade ideas? Check out our trading guides. And if you’re looking for something more interactive in nature, check out our DailyFX Webinars.

To receive James Stanley’s Analysis directly via email, please sign up here

We’ve been following the setups on both sides of EUR/USD of late, and a very similar type of stance can be taken on DXY as a representation of the U.S. Dollar. The Dollar started a rather aggressive top-side run in 2014 that eventually set a fresh 14-year high in January of this year. But after that high was set, matters changed and the Greenback then spent most of the next nine months heading-lower. As we moved into September, 50% of that prior bullish move had been retraced as some element of support finally began to show.

U.S. Dollar via ‘DXY’ Weekly: 50% Retracement of 2014-2017 Move in First Nine Months of 2017

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley

The 50% retracement of that move was traded through for one day before buyers began to take over. By the time we got to October, prices had already started testing a key zone of resistance that runs from 94.08 to 94.30, with 94.30 being the 38.2% Fibonacci retracement of that same major move. After resistance held for most of the month, USD finally broke out on October 26th as the ECB announced an extension of their stimulus program. This brought-in a fresh three month high in the Greenback, along with the prospect of bullish continuation as we moved towards year-end.

But after having been flummoxed at the 95.00 psychological level, DXY dropped below that key zone last week after a red-hot GDP report out of Germany. Prices fell back below the 94.08-94.30 zone, and support eventually showed-up around the prior swing-low around 93.50. Since then, that support has held and buyers have gradually began to push prices back into that key zone.

U.S. Dollar via ‘DXY Four-Hour: Strength Falters at 95.00, Prices Fall Back-Below Support Zone

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley

At this stage, the Dollar is moving-up to test a key area of short-term resistance. Drawing a Fibonacci retracement around the bullish move in DXY that’s shown since September will highlight a confluent area around 94.17. This is the 23.6% retracement of that recent bullish move, while also intersecting with a bullish trend-line that was broken during last week’s drop. Prices are now finding resistance on the under-side of that trend-line.

U.S. Dollar via ‘DXY’: 38.2% Retracement of Bullish Trend, Confluent Short-Term Resistance

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley

This observation can be utilized for either a bullish or a bearish approach. If we do see resistance at 94.17 taken-out, traders can look for a re-test of resistance around that psychological level of 95.00, followed by an eventual re-test of the four-month high at 95.15 But, if resistance does continue to play off of this confluent area, traders can look for a bearish re-test of the 50% Fib at 93.08.

U.S. Dollar via ‘DXY’ Four-Hour: Key Resistance Zone Sets Stage for Near-Term USD Approaches

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley


Correspondingly, as the U.S Dollar has moved into that key zone of resistance, EUR/USD has fallen back-down to a key zone of support. This zone runs from 1.1685-1.1736, and for the better part of three months – this was support in the pair. The October ECB rate decision finally dropped prices-below this area, but just a couple of weeks later, prices were surging right back-above. Resistance eventually showed at the October swing-highs, which also synced with the under-side of a bullish trend-line; and since then prices have been trickling-lower.

EUR/USD Four-Hour: Prices Fall Back into Support Zone 1.1685-1.1736

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley

If the short-side of the Dollar is going to play out, we will likely see some element of support show in EUR/USD before the prior-low around 1.1554 is taken out. On the hourly chart below, we’re focusing-in on the shorter-term bullish move that really heated up last week in the effort of gauging the prospect of bullish continuation. The 61.8% retracement of that move at 1.1671 syncs up with a group of prior swing-highs, and the 50% retracement of this move is at 1.1707. Collectively, these prices make up a zone of potential support that can be followed for short-term bullish continuation in EUR/USD.

EUR/USD Hourly: Potential Short-Term Support Zone 1.1671-1.1707

U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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