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. See our updated Privacy Policy here.

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
Wall Street
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
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
US Dollar Outlook: USD Snaps Back- Are Bears Taking Control?

US Dollar Outlook: USD Snaps Back- Are Bears Taking Control?

Michael Boutros, Strategist

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

  • US Dollar technical trade level update – DXY Daily & Intraday Charts
  • USD rebounded falters ahead of downtrend resistance- pullback testing initial support
  • Yearly open support 89.87/93 Resistance at 91 and 91.32/44 (key)
Advertisement

The US Dollar Index plunged more than 0.6% since the start of the week with the recent DXY rally faltering just ahead of broader downtrend resistance. So, is the USD recovery over? While the broader outlook remains weighted to the downside, the recent sell-off keeps price within the confines of the near-term advance and we’re looking for a reaction just lower for guidance in the days ahead. These are the updated technical targets and invalidation levels that matter on the US Dollar Index technical price charts. Review my latest Strategy Webinar for an in-depth breakdown of this DXY technical setup and more.

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: A breakout of the November trendline into the start of the year fueled a rally of more than 1.95% off the lows with the index turning just pips ahead of the 2017 low / median-line resistance at 91.01 this week. Confluence daily support now rests at the 61.8% & 88.6% retracement / yearly open at 89.87/93 – a break / close below this threshold would be needed to suggest resumption of the broader downtrend towards the 2018 low-day close at 89.07.

US Dollar Index Price Chart – DXY 240min

US Dollar Index Price Chart - DXY 240min - USD Trade Outlook - Technical Forecast

Notes: A closer look at DXY price action shows the index trading within a near-term ascending pitchfork formation extending off the December / January lows with the recent rally faltering into the 75% parallel. The decline is now testing the 25% parallel and we’re looking for possible inflection here. Initial resistance back at the median-line backed by 91.01- Ultimately a breach / close above the 38.2% retracement / 2017 low-day close / 100% extension at 91.32/44 is needed to suggest a more significant low is in place. For now, the focus is on possible support on this pullback with 89.87/93 and 89.61 representing areas of interest for possible intraday downside exhaustion IF the greenback is indeed still heading higher.

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 recovery has stalled at resistance and the immediate focus is on this pullback as the index approaches near-term uptrend support. From at trading standpoint, look for inflection into the lower parallels for guidance with a break below this near-term formation needed to mark resumption. Ultimately, a larger Dollar recovery may offer more favorable opportunities closer to broader downtrend resistance. Review my latest US Dollar Weekly Price Outlook for a closer look at the longer-term DXY technical trade levels.

Key US Data Releases

Key US Data Releases - USD Economic Calendar - DXY Event Risk

Economic Calendar - latest economic developments and upcoming event risk.

Active Technical Setups

--- 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