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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/reMoYpqkQO
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
Dollar Technical Analysis: DXY Sitting At Trend Support

Dollar Technical Analysis: DXY Sitting At Trend Support

2017-01-10 18:45:00
Tyler Yell, CMT, Currency Strategist
Share:

Talking Points:

The Dollar Index remains out of short-term favor in the second week of trading for 2017 as shown by price pushing towards the January 5 low of 101.30. A key theme we’ve been watching that has provided a leading indication of currency strength and weakness have been sovereign yield spreads.

We’ve recently seen a pull-back in U.S. Treasury yields, which has narrowed the sovereign spread, which has provided support for DXY counterparts. For die-hard fans of Ichimoku, the UST 2yr Yield has broken below the 4-hr cloud, which could be indicative of falling bullish momentum as yields move higher on the anticipated hawkish action from the Fed. There is often a very similar price pattern in USD/JPY and UST 2yr Yield patterns, and USD/JPY has also shown a reason for concern.

Interested in Joining Our Analysts, Instructors, or Strategists For a Free Webinar? Register Here

The chart below shows a retracement from an over-cooked DXY that was trading briefly above the price channel has now moved back to the channel median line. There has been a disappointing follow-through following Friday’s payroll numbers, which seems to favor further downside as positioning was rather heavily stretched going into the announcement.

The market appears to be well bracketed to help show traders where the path of least resistance lies given the fundamental backdrop. A break below the January 5 low would indicate a sharper drop to the December 14 (FOMC day) low of 100.73 or possibly the December low of 99.43 could be in the works.

However, a break above the two immediate forms of resistance at 102.52 would turn attention to the prior heavy resistance at 103.20 where price failed to extend despite the encouraging data and even more hawkish Fed than anticipated. A failure for the price to take over resistance would keep attention on the RSI(5) divergence that favored a further pullback.

D1 Chart Shows DXY Sitting At Support After Overshooting Strong Bullish Channel

Dollar Technical Analysis: DXY Sitting At Trend Support

Shorter-Term DXY Technical Levels for Tuesday, January 10, 2017

For those interested in shorter-term levels of focus than the ones above, these levels signal important potential pivot levels over the next 48-hours of trading.

Dollar Technical Analysis: DXY Sitting At Trend Support

T.Y.

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

DISCLOSURES