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.

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
Oil - US Crude
Bearish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your market update from @ddubrovskyFX here: https://t.co/F3uz5GHMSd https://t.co/2hBpM2GfQz
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.43% 🇪🇺EUR: 0.27% 🇳🇿NZD: 0.26% 🇨🇭CHF: 0.16% 🇬🇧GBP: 0.06% 🇯🇵JPY: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/FepOfYzUbt
  • Heads Up:🇭🇰 Unemployment Rate (DEC) due at 08:30 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-19
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.75% France 40: 0.53% FTSE 100: 0.51% US 500: 0.49% Wall Street: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I7VfQOMWtF
  • British Pound Outlook: GBP May Rise as Covid-19 Cases Begin to Fall - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/19/British-Pound-Outlook-GBP-May-Rise-as-Covid-19-Cases-Begin-to-Fall.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP $GBPUSD $GBPJPY https://t.co/aSim8HzN6G
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/glbdFlbhjT
  • 🇩🇪 Inflation Rate MoM Final (DEC) Actual: 0.5% Expected: 0.5% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2021-01-19
  • 🇩🇪 Inflation Rate YoY Final (DEC) Actual: -0.3% Expected: -0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-01-19
  • 🇩🇪 Inflation Rate MoM Final (DEC) Actual: 0.5 Expected: 0.5% Previous: -0.8% https://www.dailyfx.com/economic-calendar#2021-01-19
  • 🇩🇪 Inflation Rate YoY Final (DEC) Actual: -0.3 Expected: -0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-01-19
USD 1Q Forecast: US Dollar Breaks Multi-year Trend Support – Looking for a Low

USD 1Q Forecast: US Dollar Breaks Multi-year Trend Support – Looking for a Low

Michael Boutros, Strategist

USD 1Q Forecast: US Dollar Breaks Multi-year Trend Support – Looking for a Low

Advertisement

DXY Price Chart

USD, US Dollar, DXY Index Price Chart Technicals

Chart prepared by Michael Boutros, created with TradingView

One of the most significant technical reactions this past year was in the US Dollar Index. For years now we’ve been tracking the 2011 support trendline with parallels of this slope defining every major turn in the Dollar since the 2014 breakout. A test of the upper parallel / 2016 high-close at 102.99 during the height of the Covid crisis in March was followed by a massive yearly opening-range reversal with the July break below the 2018 parallel fueling a decline to multi-year lows in August.

The 2011 trendline held for three months before crashing lower in November. This breakdown constitutes the first major break for the multi-year upsloping Dollar support. Initial support is eyed at the 88.6% retracement of the 2018 advance at 89.93 backed by the 2010 high at 88.70 and the 50% retracement / 2018 low at 88.18/25. Resistance stands at 92.28 backed by former slope support– ultimately a breach above the March low at 94.65 would be needed to suggest a more significant low is in place. Bottom line, the risk is weighted to the downside heading into the start of the year but we’ll be on the lookout for a possible low in the second / third quarter closer to slope support.

Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Michael Boutros
Get Your Free Top Trading Opportunities Forecast
Get My Guide

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

DISCLOSURES