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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
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
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
More View more
Real Time News
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/8gGfGuw87o
  • The $USD breakdown has taken the index into confluence support at the objective yearly open. Get your USD technical analysis from @MBForex here: https://t.co/A16XEv6n4d https://t.co/VFxFMFWJ5L
Dollar Price Outlook: USD Reversal Threatens Deeper April Correction

Dollar Price Outlook: USD Reversal Threatens Deeper April Correction

2020-03-27 16:30:00
Michael Boutros, Strategist
Share:

US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • Dollartechnical trade level update – Daily & Intraday Charts
  • USD reverses sharply off 2016 high-close; risk for further losses while below 100
  • DXY sell-off approaching initial support objectives

The US Dollar plummeted more than 2.4% off fresh multi-year highs this week with DXY threatening a false-breakout of uptrend resistance. This week’s volatility continues a string of massive swings in the greenback with USD marking ranges in excess of 2% for the past four consecutive weeks. The recent price collapse is testing initial support here and the focus is on a the weekly close with respect to the 100-handle for guidance. These are the updated technical targets and invalidation levels that matter on the US Dollar Index (DXY) weekly price chart. Review my latest Strategy Webinar for an in-depth breakdown of this US Dollar trade setups and more.

Starts in:
Live now:
Jun 08
( 12:06 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

US Dollar Index Price Chart – DXY Weekly

US Dollar Index Price Chart - DXY Weekly - USD Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Notes: In my last US Dollar Weekly Price Outlook our bottom line cited that the DXY sell-off had, “covered the entire yearly range in under three weeks with the decline now approaching the first major support hurdle.” We noted that, “Ultimately, a break / close below last year’s low at 95.03 is needed to fuel the next leg lower in the Dollar...” The index briefly probed below to register a low at 94.65 before reversing sharply higher with the dollar failing at the 2016 high-close / parallel resistance at 102.95. Another sharp reversal this week takes price back below the initial yearly opening-range highs with price paring half the entire yearly range in one week.

Initial weekly support here at 98.81 backed by confluence a 61.8% Fibonacci confluence at 97.83/87 - look for a bigger reaction there IF reached with a close below needed to suggest a more significant high was registered this week. Such a scenario would shift the focus back towards 97.35 and yearly open support at 96.50. Initial resistance now back at 98.98- a close above this threshodl would be needed to keep the broader long-bias viable heading into next week with key resistance now at the yearly high-week close at 101.95.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: The US Dollar price reversal is attempting to pullback below uptrend resistance and while the broader focus remains higher, the risk is mounting for a larger correction IF price closes the week at these levels. Form a trading standpoint, look for topside exhaustion while below 100 with a break sub-97.87 needed to keep the immediate short-bias in play. Keep in mind we’re heading into the close of the month/quarter early next week – stay nimble into the April open with Coronavirus headlines likely to continue driving broader market sentiment.

USD Forecast
USD Forecast
Recommended by Michael Boutros
Download Our Latest Quarterly US Dollar Price Forecasts!
Get My Guide

Key US Data Releases

US Economic Calendar- USD Event Risk - Data Releases

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

Building Confidence in Trading
Building Confidence in Trading
Recommended by Michael Boutros
Learn how to Trade with Confidence - Free Trading Guide
Get My Guide

--- Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.