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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • It's US jobs day! We're talking the impact of NFP on FX markets, as well as the taperless tantrum, for the next ~30-minutes. Join now -- https://www.dailyfx.com/forex/video/live_events/2021/03/05/live-data-coverage-february-us-nonfarm-payrolls-w-christopher-vecchio-cfa-march-5.html
  • 🇷🇺 Foreign Exchange Reserves (FEB) Actual: $586.3B Previous: $590.7B https://www.dailyfx.com/economic-calendar#2021-03-05
  • 15 MINS: NFP Live - Expectations: 182k - Range: Low -100, Hi 500k Unemployment Rate expected 6.3% - Range: Low 6%, Hi 6.5% https://www.dailyfx.com/forex/video/live_events/2021/03/05/live-data-coverage-february-us-nonfarm-payrolls-w-christopher-vecchio-cfa-march-5.html
  • Heads Up:🇺🇸 Nonfarm Payrolls Private (FEB) due at 13:30 GMT (15min) Expected: 210K Previous: 6K https://www.dailyfx.com/economic-calendar#2021-03-05
  • Heads Up:🇺🇸 Participation Rate (FEB) due at 13:30 GMT (15min) Previous: 61.4% https://www.dailyfx.com/economic-calendar#2021-03-05
  • Heads Up:🇺🇸 Average Hourly Earnings YoY (FEB) due at 13:30 GMT (15min) Expected: 5.3% Previous: 5.4% https://www.dailyfx.com/economic-calendar#2021-03-05
  • Heads Up:🇺🇸 Average Weekly Hours (FEB) due at 13:30 GMT (15min) Expected: 34.9 Previous: 35 https://www.dailyfx.com/economic-calendar#2021-03-05
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.19% 🇨🇦CAD: -0.26% 🇪🇺EUR: -0.28% 🇬🇧GBP: -0.44% 🇦🇺AUD: -0.68% 🇳🇿NZD: -0.79% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XQVazynXVD
  • Heads Up:🇺🇸 Average Hourly Earnings MoM (FEB) due at 13:30 GMT (15min) Expected: 0.2% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-03-05
  • Heads Up:🇺🇸 Balance of Trade (JAN) due at 13:30 GMT (15min) Expected: $-67.5B Previous: $-66.6B https://www.dailyfx.com/economic-calendar#2021-03-05
Dollar Price Outlook: USD Technical Breakdown at Yearly Open Support

Dollar Price Outlook: USD Technical Breakdown at Yearly Open Support

Michael Boutros, Strategist

US Dollar Technical Price Outlook: DXY Near-term Trade Levels

  • US Dollar technical trade level update – Daily & 120min Charts
  • DXY marks eight-day decline into yearly open support at 96.50
  • Key resistance 97.87 – break below 96.21 needed to fuel next leg

The US Dollar plunged more than 3% on an eight-day decline with the index now down more than 6% from the yearly highs. Price is testing a major support confluence into the close of the week and the focus is on a reaction just lower 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 Weekly Strategy Webinar for an in-depth breakdown of this US Dollar trade setups and more.

Starts in:
Live now:
Mar 08
( 13:03 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 Daily

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

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

Technical Outlook: In my last US Dollar Weekly Price Outlook we noted that the, “The Dollar Index has broken below a multi-week consolidation / the May opening-range lows and keeps the focus lower heading into June.” The greenback is down more than 1.3% this week as the decline took another leg lower with DXY testing confluence support into the close on Friday.

The zone in focus is 96.44/50- a region defined by the objective yearly open & the 78.6% Fibonacci retracement of the March advance and converges on basic parallel support. The 100% extension of the broader decline rests just lower at 96.21 and a break / close below this threshold is needed to keep the immediate short-bias viable towards the 2019 low-day close at 95.55.

US Dollar Index Price Chart – DXY 120min

US Dollar Index Price Chart - DXY 120min - USD Trade Outlook - Technical Forecast

Notes: A closer look at Dollar price action shows DXY trading within the confines of a descending pitchfork formation extending off the May highs with the lower parallel further highlighting the 96.44/50 support zone. Initial resistance now at the median-line / November lows at 97.11 with near-term bearish invalidation now lowered to the 2018 high / 61.8% retracement at 97.71/87- a breach / close above this threshold would be needed to shift the focus back to the long-side in the Dollar.

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 breakdown has taken the index into confluence support at the objective yearly open. From at trading standpoint, a good spot to reduce short-exposure / lower protective stops. Be on the lookout for topside exhaustion ahead of 97.87 IF price is indeed heading lower with a close below 96.21 needed to mark resumption. Keep in mind we have the FOMC interest rate decision on tap next week – stay nimble.

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

---

Key US Data Releases

Key US Data Releases - Dollar Economic Calendar - USD Event Risk Ahead

Economic Calendar - latest economic developments and upcoming event risk.

Active Trade Setups

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