US Dollar Outlook: Euro, DXY Charts & More
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The US Dollar Index (DXY) is continues to act as it has over the past year+ since it began grinding its way higher ever so slowly. So slowly, that barring a major breakout the yearly range will be the smallest since 1976.
With that said, though, that doesn’t mean there isn’t still opportunities out there. They will just be fewer and smaller. The DXY pattern as mentioned is playing out similar to other times in the cycle. The surge to start the month was met with a retracement, which has not turned back into another leg higher so far. If the DXY follows the script then another run towards 99 or better should soon be in the works.
DXY Daily Chart (looking for continuation rally)
US Dollar Index (DXY) Chart by TradingView
EUR/USD will be the key driver here for the DXY as it stands as the largest constituent in the index at a hefty 57% weighting. Currently it is sitting on a minor form of trend support off the October 1 low. A breakdown below 10989 should get the ball rolling towards the cycle low at 10879.
EUR/USD Daily Chart (path of least resistance lower)
For the full set of technical details and charts, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.