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US Dollar Technical Outlook Turning Positive: USD Charts to Watch

US Dollar Technical Outlook Turning Positive: USD Charts to Watch

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USD Technical Outlook

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US Dollar working on turning the corner

The US Dollar Index (DXY) is in the process of turning higher, representing what may potentially amount to a broad USD rally. The index in the short-term is working on an inverse head-and-shoulders pattern that could soon have the March trend-line in focus if the neckline is broken.

In the event the pattern is triggered and the March trend-line is breached, the next level of significant resistance to watch will be the September low at 91.74. Both of these medium-term thresholds have significant importance to the outcome on a boost higher from here.

Should the head-and-shoulders fail to trigger above the neckline and rollover towards a break of 90.05, then look for a potential continuation in the downward trend towards the 2018 low at 88.27.

At the immediate moment, the upside is looking increasingly favorable, but we can’t rule out a pattern failure. With that in mind, waiting for confirmation will be key.

Turning to a few key USD charts; EUR/USD is looking nearly opposite the DXY (EUR = 57.6% of DXY), GBP/USD is posting a rising wedge that could soon trigger, USD/JPY channel is about to break, and USD/CAD is trying to break a falling wedge.

USD Forecast
USD Forecast
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US Dollar Index (DXY) Daily Chart (inverse H&S, top-side resistance to watch)

usd

DXY Chart by TradingView

EUR/USD 4-hr Chart

eur/usd

EUR/USD Chart by TradingView

GBP/USD 4-hr Chart

gbp/usd

GBP/USD Chart by TradingView

USD/JPY 4-hr Chart

usd/jpy

USD/JPY Chart by TradingView

USD/CAD 4-hr Chart

usd/cad

USD/CAD Chart by TradingView

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---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

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