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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
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
Mixed
More View more
Real Time News
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
US Dollar Price Outlook: USD Rally Rips into Resistance– DXY Levels

US Dollar Price Outlook: USD Rally Rips into Resistance– DXY Levels

2020-01-19 08:00:00
Michael Boutros, Technical Strategist
Share:

US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • US Dollar recovery off multi-year up-trend in focus- yearly open support at 96.50
  • DXY rally now testing 2019 trendline resistance
  • USD long-bias vulnerable heading into long-term resistance at 97.87

The US Dollar rallied more than 0.27% this week with DXY trading at 97.61 ahead of the New York close on Friday. The gains mark the second consecutive-weekly advance in the greenback and takes the Dollar Index into the first region of targeted resistance. These are the updated targets and invalidation levels that matter on the US Dollar Index (DXY) weekly price chart. Review my latest Strategy Webinar for an in-depth breakdown of thesetrade setups and more.

Starts in:
Live now:
Feb 24
( 13:02 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

US Dollar Price Chart – DXY Weekly

US Dollar Weekly Chart

Chart Prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Notes: In my last US Dollar Weekly Price Outlook we noted that DXY was, “testing multi-year uptrend support into the open of 2020 trade.” That slope held into the open with the subsequent rebound now testing basic trendline resistance extending off the 2019 highs. It’s make-or-break heading into next week for the greenback.

A breach above this slope once again exposes a pivot zone at the 61.8% retracement of the 2017 decline at 97.87- a close above this threshold is needed to validate a larger reversal targeting 98.40 and the 2019 high-week reversal close at 98.84- both levels of interest for possible exhaustion IF reached. Weekly support rests with the objective yearly open at 96.50 – note that the lower parallel extending off the June 2018 low converges on this zone over the next two weeks. Critical support and broader bullish invalidation steady at the 100% extension / 2019 yearly open at 95.98-96.14 – look for a bigger reaction there IF reached.

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 is testing multi-month downtrend resistance on this stretch and leaves the immediate advance vulnerable while below 97.87 heading into next week. From a trading standpoint, look for possible topside exhaustion into this zone- a good spot to reduce long-exposure / raise protective stops with a close above needed to keep the long-bias viable. I’ll publish an updated US Dollar Price Outlook once we get further clarity on the near-term DXY technical trading levels.

USD Forecast
USD Forecast
Recommended by Michael Boutros
Download Our Latest Quarterly US Dollar Price Forecasts!
Get My Guide

Previous Weekly Technical Charts

Building Confidence in Trading
Building Confidence in Trading
Recommended by Michael Boutros
Learn how to Trade with Confidence - Free Trading Guide
Get My 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

News & Analysis at your fingertips.