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.

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
Subscribe
Please try again
More View more
US Dollar Forecast: Positive Slope in 50-Day Points to USD Breakout

US Dollar Forecast: Positive Slope in 50-Day Points to USD Breakout

David Song, Strategist

US Dollar Talking Points

The US Dollar Index (DXY) consolidates after trading to a fresh yearly high (105.79) earlier this month, but the Greenback may attempt to break out of the range bound price action if it continues to track the positive slope in the 50-Day SMA (103.04).

Technical Forecast for US Dollar: Bullish

The US Dollar Index (DXY) appeared to be on track to test the December 2002 high (107.31) as the advance from the May low (101.30) pushed the Relative Strength Index (RSI) towards overbought territory, but the oscillator struggled to push above 70 as the index failed to break above the 105.80 (61.8% expansion) hurdle.

US Dollar Index (DXY) Daily Chart

US Dollar Forecast: Positive Slope in 50-Day Points to USD Breakout

Source: TradingView

As a result, DXY may trade within the June range over the near-term, with a break/close below the 103.30 (50% expansion) area bringing the monthly low (101.64) on the radar.

However, DXY may respond to the 50-Day SMA (103.04) like the price action seen earlier this month, and the Greenback may continue to track the positive slope in the moving average as long as it manages to hold above the 130.30 (50% expansion) region.

With that said, need a break/close above the 105.00 (23.6% expansion) handle to bring the 105.80 (61.8% expansion) region back on the radar, with the next area of interest coming in around 107.20 (38.2% expansion).

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

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

DISCLOSURES