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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
US Dollar Technical Forecast: USD Lacks Conviction as Resistance Nears

US Dollar Technical Forecast: USD Lacks Conviction as Resistance Nears

What's on this page

USD Technical Outlook:

  • US Dollar Index (DXY) has a little room to rally before resistance
  • Low volatility brings lack of conviction in moves both higher and lower

US Dollar Technical Forecast: USD Lacks Conviction as Resistance Nears

The US Dollar as per the DXY has been somewhat strong of late and continues to look poised for higher levels in the short-run. However, given the generally low volatility and propensity for momentum to stall after short periods of trending, resistance ahead may prove too much to hurdle.

There is the high from August at 93.72 and a top-side trend-line from March that stand in the way of the DXY advancing further from here. We may see a through test develop in the days ahead, and so watching how price action behaves will be key. A turnabout in momentum may usher in a reversal.

On the flip-side, should we see a surprising uptick in momentum as resistance is reached and exceeded, then perhaps an extended run higher could develop towards the important ~94.65 area. In this scenario we will still need to closely monitor signs of stalling as new swing highs and lows have not always been able to maintain.

US Dollar (DXY) Daily Chart

US Dollar Chart

US Dollar 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

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