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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • US Dollar Price Action Setups: EUR/USD, GBP/USD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/04/19/US-Dollar-USD-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD.html $USD $EURUSD $GBPUSD https://t.co/Jyr7pfHhdH
  • RT @CGasparino: BREAKING -- @JoeBiden Admin is in the early stages of developing a regulatory approach to the booming crypto biz, sources t…
  • The US Dollar is in correction within the yearly uptrend with the decline now eyeing initial support objectives just lower. Get your $USD technical analysis from @MBForex here:https://t.co/QLdiJa8z7v https://t.co/95rBic2Ke8
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.03% Gold: -0.29% Silver: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nj9OGkvt7a
  • The Dollar ($DXY) has cleared both its 50-day SMA and the midpoint of the 2021 range. What has greater pull: its roll as wayward safe haven (vs inverted $SPX) or the recent fade in returns (US 10yr). The 20-day correlation to both approximately ~0.8, strong https://t.co/1dteHRggua
  • US Dollar Index (DXY) trend from last March picking up steam again. February and January lows up next on radar, could take a few weeks. Get your market update from @PaulRobinsonFX here:https://t.co/KCsZINK3KI https://t.co/3EN4Xrxnjn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9j9ojxURdw
  • RT @ChadPergram: Biden now mtg w/bipartisan/bicameral mbrs about infrastructure. Says they're discussing "how to pay for it." Adds they "ho…
  • $WTI #Crude #Oil Price Outlook: Breakout Eyes Resistance- Bulls at Risk - https://t.co/RuNq3bxxaW https://t.co/784dxJq0m7
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.17% France 40: -0.21% FTSE 100: -0.21% Wall Street: -0.43% US 500: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TOxQi0CN8k
US Dollar Price on the Brink of Support Break: DXY, Euro Charts

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

Paul Robinson, Strategist

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