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
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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • About to start in a few minutes, will be covering positioning in the British Pound amid the latest #Brexit developments and more! Join below $GBPUSD https://t.co/FQqd59VbCL
  • The $GBP swung wildly following a series of votes that are critical in the #Brexit proceedings. Get your market update from @PeterHanksFX here:https://t.co/kEb6EeUdMu https://t.co/xceWoNxSXg
  • LIVE IN 30 MIN: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • (Asia Pacific AM Briefing) GBP/USD Rate Sinks as Brexit Limbo Opens the Door to Yen Strength $GBPUSD #Brexit #Yen - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/10/22/GBPUSD-Rate-Sinks-as-Brexit-Limbo-Opens-the-Door-to-Yen-Strength.html?CHID=9&QPID=917702 https://t.co/oyeoDOXO1I
  • Sneak-peak of the latest US Dollar Price Volatility Report, which brings you up to speed on everything $GBPUSD and #Brexit. Implied volatility and trading range table for major USD pairs included as always. Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/10/22/us-dollar-price-volatility-report-gbp-to-usd-in-brexit-limbo.html https://t.co/dOG8Hkg9fe
  • #EURCHF pivot points (daily) – S3: 1.0946, S2: 1.0977, S1: 1.0994, R1: 1.1026, R2: 1.1041, R3: 1.1073- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/FnPAjzSW1H
  • For those who want to know who made the cut in this year's episode of...how doomed are we? #EmergingMarkets https://t.co/f7S5IfSEqP
  • List of emerging market countries where the central bank has cut rates this year: Mexico 🇲🇽 Egypt 🇪🇬 Paraguay 🇵🇾 China 🇨🇳 Indonesia 🇮🇩 Jordan 🇯🇴 Saudi Arabia 🇸🇦 Brazil 🇧🇷 Vietnam 🇻🇳 India 🇮🇳 Russia 🇷🇺 Turkey 🇹🇷 Chile 🇨🇱 Peru 🇵🇪 Thailand 🇹🇭 Malaysia 🇲🇾 Serbia 🇷🇸 and many more...
US Dollar Price on the Brink of Support Break: DXY, Euro Charts

US Dollar Price on the Brink of Support Break: DXY, Euro Charts

2019-06-21 09:30:00
Paul Robinson, Currency Strategist
Share:

USD Technical Highlights:

  • US Dollar Index (DXY) flirting with major support break
  • Breakout of wedge pattern could soon be in play
  • Euro will be the primary driver here given its weighting

To see what fundamental drivers and technical signposts DailyFX analysts are watching, check out the Q2 forecasts for various markets on the DailyFX Trading Guides page.

US Dollar Index (DXY) flirting with major support break

A couple of weeks back the US Dollar Index (DXY) bounced off confluent support arriving by way of the trend-line (underside of longer-term wedge) and the 200-day. The bounce looked sustainable up to at least the old highs in the low-98s, but since the Fed meeting the other day we’ve seen aggressive selling that has support just about broken, again.

‘Teetering’ on support is how I would describe this. Looks like it is about to break and in fact is sneaking every so slightly under the trend-line already, but still price hasn’t fully cleared all levels. To get a confirmed break a move through 96.46 on a closing daily basis is needed, weekly basis even better.

A confirmed break will have a wedge formation in play as well and this could lead to the DXY testing downside levels in aggressive fashion in the weeks ahead. It would be a welcomed event as pent up pressure has led to increasingly choppy trading conditions. Something looks set to give at some point soon…

However, a failure to sustain under support may lead to a rally, so the key here is to wait for a confirmed break. A hold of support won’t turn the Dollar bullish, but it does at least keep it neutral with shorts still lacking the proper set of conditions needed to get aggressive. Would-be longs can continue to use support as a line-in-the-sand for however long it lasts.

US Dollar Index (DXY) Weekly Chart (wedge)

US Dollar Price on the Brink of Support Break: DXY, Euro Charts

US Dollar Index (DXY) Daily Chart (teetering on support)

US Dollar Price on the Brink of Support Break: DXY, Euro Charts

Euro will be the primary driver here given its weighting

The Euro being 57% of the DXY index means it will be the primary driver. It, like the Dollar Index, has a similar chart pattern, but pointing in the opposite direction. A break above confluent resistance (close above 11352) should have EURUSD running higher. But resistance is resistance until it’s not, so still a little work to do.

EURUSD Weekly Chart (falling wedge)

US Dollar Price on the Brink of Support Break: DXY, Euro Charts

Forex & CFD Trader Resources

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.

DISCLOSURES

News & Analysis at your fingertips.