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
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • USD/JPY strengthening during trade, adding to an impressive run for the Dollar/Yen pair in 2021 https://t.co/xHRuS8D2i0
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: -0.21% Oil - US Crude: -0.21% Gold: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4hoyPt34ex
  • The latest CFTC positioning data for the week ending March 2nd saw speculators continue to unwind their US Dollar net shorts. Get your market update from @JMcQueenFX here:https://t.co/S3Kx4OBphE https://t.co/fejOV0AXYv
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.43%, while traders in Germany 30 are at opposite extremes with 80.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/klgOuNPYtk
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.45% US 500: 0.20% France 40: -0.10% Germany 30: -0.25% FTSE 100: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/umSIPmSxrY
  • $EURCAD has continued to head lower today, now trading right around the 1.5000 level. The pair hit a fresh one-year low, currently trading at its lowest level since early March of last year. $EUR $CAD https://t.co/Oj9JYasyTU
  • US Indices are rebounding from last week's sell off today. The Dow is leading the way, rising to a fresh all-time high. The Nasdaq remains negative for the day. DOW +2.00% NDX -0.55% SPX +0.91% RUT +1.70% $DIA $QQQ $SPY $IWM
  • Another look at the deviation in 'internal' interest in US equities: the candle is the Nasdaq 100 to S&P 500 ratio ($NDX-$SPX) overlaid with the S&P 500 itself in blue https://t.co/m2WK4Q2Bs5
  • A notable deviation in direction from the tech-heavy Nadex composite (candle) overlaid with the S&P 500 in blue. The 5-day correlation is still holding up but will start deviating fast at this pace https://t.co/VYY5imk1yS
  • $USD has been pretty strong over the past couple of weeks and to a lesser degree, so far in 2021 but we've only retraced about 23.6% of that massive sell-off that started last March $DXY https://t.co/t5KRSYu0TP
US Dollar Outlook: USD Price Collapse Stretches Into Weekly Open

US Dollar Outlook: USD Price Collapse Stretches Into Weekly Open

Michael Boutros, Strategist

US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • US Dollartechnical trade level update – Weekly Chart
  • USD Breaks multi-year uptrend support – risk for further losses into year-end
  • DXY at risk for sharp declines sub-92.28- Initial weekly into 89.90s
Advertisement

The US Dollar Index has plummeted more than 4% off the September highs with the sell-off breaking below major multi-year uptrend support last week - the technical implications of this break are massive and suggest a significant shift in the longer-term USD price outlook. That said, the decline looks stretched into the weekly open and the risk for near-term exhaustion rises on a test of parallel support just lower. These are the updated technical targets and invalidation levels that matter on the US Dollar Index weekly price chart. Review my latest Strategy Webinar for an in-depth breakdown of this DXY technical setup and more.

Starts in:
Live now:
Mar 10
( 14:03 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Market Check Up with Michael Boutros
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 last month’s US Dollar Weekly Price Outlook we noted that DXY was, “attempting to break / close below critical support zone at multi-year uptrend support – risk for accelerated losses while below 92.28.” The index spent more than two weeks attempting to break this level before crashing lower into the close of November with the Dollar plummeting another 1.2% into the start of December trade.

Initial support rests with the slope parallel extending off the June 2019 low backed closely by the 88.6% Fibonacci retracement of the 2018 advance at 89.93- look for inflection there IF reached with a break / close below needed to keep the focus on subsequent objectives at the 2010 high at 88.71 & 88.18. Initial resistance now at 91.92-92.28 backed by the highlighted trendline confluence near 92.75 and 93.30s– a breach / close above this threshold would be needed to shift the broader focus higher again in the greenback.

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 has broken major uptrend support and keeps the outlook weighted to the downside heading into the close of the year. From a trading standpoint, the immediate decline may be vulnerable in the days ahead as price approaches downtrend support- look for topside exhaustion ahead of 92.28 on recoveries IF price is indeed heading lower with the next leg down exposing Fibonacci support near the 90-handle. Ultimately a breach above the 2011 trendline would be needed to suggest a false break scenario here.

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 - USD Economic Calendar - Dollar Weekly Event Risk

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

--- 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