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
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
Oil - US Crude
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • RT @MarkNewtonCMT: VIX curve showing Spot VIX v 3 month now in backwardation by 8 percentage points- Just one piece of the puzzle, but wor…
  • $USDJPY Daily Pivot Points: S3: 108.29 S2: 109.6 S1: 110.16 R1: 111.46 R2: 112.2 R3: 113.5 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The $SPX ended a 92-day trend trading above the 50-day moving average Monday https://t.co/9LCJ9TssGF
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.60% 🇯🇵JPY: 0.47% 🇨🇭CHF: 0.29% 🇨🇦CAD: 0.11% 🇦🇺AUD: -0.05% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LG4HGxYIXO
  • It will be a while until we know the true outcome of this poll (did we see the $SPX top last week or not), but seems the majority for now still say "no" https://t.co/mfPCYUx1wt
  • RT @ballmatthew: Summary of weird: - Bob is 14 months into 36 month extension - Didn't do this during blow-them-away earnings a few weeks a…
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.52% Gold: -1.46% Silver: -3.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mhWPSlN67M
  • Precious Metals Update: #Gold 1,648.72 (-0.65%), #Aluminum 1,699.00 (-0.85%), and #Copper 5,689.00 (-1.32%) [delayed]
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.80%, while traders in USD/CAD are at opposite extremes with 69.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xuUp4rblhb
  • Commodities Update: NYM WTI Crude 49.87 (-3.03%), ICE Brent Crude 54.79 (-2.68%), NYM NYH Gasoline 152.78 (-5.05%). [delayed]
Weekly Technical Perspective on the US Dollar (DXY)

Weekly Technical Perspective on the US Dollar (DXY)

2018-06-18 16:50:00
Michael Boutros, Technical Strategist
Share:

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The USD is testing near-term resistance here but the broader risk remains weighted to the topside. Here are the key levels that matter on the weekly chart for the US Dollar (DX) heading into the close of the month. Review Today's Strategy Webinar for an in-depth breakdown of this setup and more.

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

USD Weekly Price Chart (DXY)

USD Weekly Price Chart - DXY - Dollar Index

Notes: In last month’s US Dollar Weekly Technical Perspective, we noted that the USD was, “testing confluence resistance at 93.89-94.20 where the 2016 low-week reversal close and the 38.2% retracement of the 2017 decline converge on the median-lineA breach above this key zone targets subsequent resistance targets at the 200-week moving average at 94.80 and the 50% retracement at 96.04.

Last Week’s FOMC policy meeting saw interest rate expectations shift as markets priced in a fourth rate hike this year- near-term bullish for the USD. The Dollar Index posted an outside weekly reversal through confluence resistance with the rally stretching into the 200-week moving average, now at ~95. A newly identified ascending pitchfork formation extending off the 2017 and 2018 lows also has price testing the upper 50-line into the start of the week.

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

Bottom line: The Dollar is testing near-term resistance here and while we could see some pullback in price, the broader focus is on a hold above the 93.89-94.20 pivot zone. A breach higher from here targets 96.04/35 backed by the median-line confluence just above the 97-handle.

A break below last week’s low targets the median-line of the newly added formation around ~92.90s with critical support / bullish invalidation steady at the yearly open / 52-week moving average at 92.28/45. From a trading standpoint, I’ll favor fading weakness while above 93.90.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

RELEVANT USD DATA RELEASES

USD Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.