Skip to Content
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.



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
Please try again
More View More
USD Recovery and Resistance Hurdles: Q2 Top Trading Opportunities

USD Recovery and Resistance Hurdles: Q2 Top Trading Opportunities

Michael Boutros,
What's on this page

US Dollar Recovery Approaching Make-or-Break Resistance Hurdles into 2Q


DXY Weekly Price Chart

DXY, US Dollar Index, Dollar Index Price Chart, Technical Analysis

Chart prepared by Michael Boutros, created with TradingView

Into the start of 2021, a top focus was on the US Dollar breakdown after DXY broke below a multi-year support trendline extending off the 2011 low. Our ‘bottom line’ noted that, “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.” The decline accelerated into the close of the year with the index plummeting another 2.7% before turning just ahead of the 2018 low-week close at 89.07 (low resisted at 89.20) in early January.

The low was much earlier than anticipated, but nonetheless registered at a technically significant level; and the focus heading into Q2 is on this immediate recovery. Initial resistance stands at the highlighted trendline confluence near ~93.25 – be on the lookout for possible inflection there with a breach / close above needed to keep the long-bias viable towards the 2016 low-week close at 93.88 and the 38.2% Fibonacci retracement / 2020 March low at 94.47/65 (an area of interest for possible topside exhaustion IF reached). Support rests with the 2017 swing low at 91.01 with broader bullish invalidation now set to the objective 2021 yearly open at 89.93. Bottom line: looking for topside exhaustion early in the quarter to give way to larger pullback- losses should be limited by 91 IF price is indeed heading higher.

Top Trading Opportunities in Q2
Top Trading Opportunities in Q2
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.