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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The market’s preferred ‘fear indicator’ shows a persistent uncertainty around the near future. What can our current conditions and history tell us what to expect from the #VIX through the final two months of the year?https://t.co/jlhcFhH4sI https://t.co/zIrEjxqymJ
  • #Stock market performance is considered an important predictor of the economic outlook. What else can it be used to project? https://t.co/ViTMl19TW3 #Elections2020 https://t.co/methLCaBho
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/b9XwwYS9uJ https://t.co/8OIZVJnaD6
  • A #Euro reversal off technical downtrend resistance now risks a larger correction in price. Here are the levels that matter on the $EURUSD weekly chart. Get your #currencies update from @MBForex here: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/31/Euro-Technical-Outlook-EURUSD-Breakdown-Aims-For-Multi-month-Lows.html?QPID=30472&CHID=9 https://t.co/iVhmCXi9EG
  • We are days away from the US Presidential election and the markets are caught in the vortex. A contested outcome would raise serious volatility for the markets whereas a decisive outcome seems to support bullish $SPX and Dollar views from the market rank. https://www.dailyfx.com/forex/video/daily_news_report/2020/10/31/SP-500-and-Dollar-Forecast-Leads-Global-Markets-with-Elections-Expectations-.html https://t.co/JnJbyu6TRT
  • The future implications of the #Elections2020 may influence $AUDUSD following the #RBA and #Fed rate decisions as Congress struggles to pass another round of fiscal stimulus. Get your #currencies update from @DavidJSong here: https://t.co/soPu0Wefz2 https://t.co/UWsERr2AYh
  • Gold prices declined in the aftermath of bearish technical cues, but a key zone of support was reinforced. $XAUUSD volatility risk is elevated ahead of the #Elections2020. Get your #metals update from @ddubrovskyFX here: https://t.co/gWOxdqk8OL https://t.co/gBMgF0YNjH
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here: https://t.co/fndMQJLul8 https://t.co/elz5gNAKrB
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/7EzMPg9Kqg
  • 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:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
US Dollar Price Outlook: USD Fails at Multi-year Trend Resistance

US Dollar Price Outlook: USD Fails at Multi-year Trend Resistance

2019-09-08 09:00:00
Michael Boutros, Strategist
Share:

The US Dollar reversed off long-term slope resistance this week, opening the door for further dollar losses. Here are the levels that matter on the DXY weekly chart.

The US Dollar breakout fizzled this week with the index falling more than 0.4% to trade at 98.38 ahead of the New York close on Friday. The greenback continues to test technical slope resistance with price unable to stabilize at fresh yearly highs this week. Here These are the updated targets and invalidation levels that matter on the DXY weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this Dollar price setup and more.

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

US Dollar Index Price Chart - DXY Weekly

DXY Weekly Price Chart

Chart Prepared by Michael Boutros, Technical Strategist; DXY on Tradingview

Notes:In my latest US Dollar Index Weekly Price Outlook we noted that DXY had, “US Dollar Index is testing long-term up-trend resistance again here – heading into the start of September trade, look for a reaction at this slope with a breach / close above needed to keep the broader long-bias viable.” Prices probed the upper parallel of the 2011 slope, extending off the 2018 high, early in the week before reversing sharply – note that weekly momentum has continued to hold below the 2018 resistance trigger and further highlights near-term risk for the Dollar.

Initial support rests with the 61.8% retracement of the 2017 decline at 97.87 with a break below the 2018 trendline (currently ~97.20s) needed to suggest a more significant high was registered this week. Look for monthly open resistance at 98.83 with a breach / close above 99.43 needed to fuel a breakout targeting the 2017 uncovered close at 99.98.

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

Bottom line:The US Dollar Index failed yet another attempt at a breach above long-term uptrend resistance and remains at risk for a larger pullback while below this slope. From a trading standpoint, the immediate risk is side-ways to lower – look for exhaustion ahead of monthly open resistance on rebounds IF the greenback is indeed heading lower. Ultimately, a deeper correction may offer more favorable entries closer to trend support.

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

---

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

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

Follow Michael on Twitter @MBForex

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

DISCLOSURES