USD Highlights:
USD on the verge of testing big support (via DXY)
The US dollar is on the verge of testing big support as the DXY is trading around both the important March low and just above the trend-lines from 2014 (daily chart) and 2011 (weekly chart). The slide could come to an end this week, even if only temporarily, as price becomes extended into major support.
A push higher from support will initially be viewed as countertrend in nature given the intermediate-term trend lower off the March highs. The June low at 95.72 and trend-line from May are viewed as the first levels of meaningful resistance on a rebound.
However, if a rebound doesn’t develop the Dollar may be on the verge of a much larger decline. A break under 93 would have price well below the March low and under the 2014/2011 trend-lines. This would open a path up for an extended decline towards 88.
But before getting ahead of ourselves we need to see how the DXY responds to support just at its feet. This coming week could prove pivotal for the foreseeable future.
US Dollar Index (DXY) Daily Chart (trading around support)
U.S. Dollar Currency Index (DXY) Chart by TradingView
US Dollar Index (DXY) Weekly Chart (2011 trend-line)
U.S. Dollar Currency Index (DXY) Chart by TradingView
Resources for Forex Traders
Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
