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
More View more
Real Time News
  • Covid cases in Tokyo have reportedly exceeded 3000/day, hitting a new record (Jiji) $JPY
  • ✨FOMC Live Webinar | DailyFX Asia @DailyFXasia 🆓Register For Free ✏️Language: Chinese ⏱️Time: 2021/07/29 01:50 (GMT+8) ✏️Details: https://t.co/tSKSj8lCzU Feel free to join in, if you ae interested in July FOMC Meeting 😄
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: 0.04% US 500: -0.19% Wall Street: -0.22% Germany 30: -0.33% FTSE 100: -0.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/EFE5Znr1AI
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/dTQqfHXNtM
  • Gold Prices Test $1800 Ahead of Fed Meeting, Real Yields Fall https://www.dailyfx.com/forex/market_alert/2021/07/27/Gold-Prices-Test-1800-Support-ahead-of-Fed-Meeting-Real-Yields-Fall.html
  • The Hang Seng Tech index tumbled 5.4% amid intensified fears about China's regulatory risk on various sectors. - Tencent (-6.2%) - Alibaba (-5.0%) - Meituan (-13.9%) - Hang Seng Index (-2.5%)
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/A0w6mhPMvH
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.33%, while traders in Wall Street are at opposite extremes with 79.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/AY4wL5b1NV
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/NrcUfXKP8J
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.16% 🇬🇧GBP: 0.05% 🇪🇺EUR: 0.00% 🇦🇺AUD: -0.02% 🇨🇭CHF: -0.03% 🇳🇿NZD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UwJz4Gv6hT
US Dollar Technical Outlook: 2021 High for DXY Coming into Focus

US Dollar Technical Outlook: 2021 High for DXY Coming into Focus

Paul Robinson, Strategist

USD Technical Outlook

  • Two week sideways congestion pattern giving way to a breakout at the moment
  • Sustained breakout setting DXY up for a rally to the 2021 highs and higher

US Dollar Technical Outlook: 2021 High for DXY Coming into Focus

The US dollar trading sideways has led to the development of a steady base from which the DXY is trying to rally from. Last week, we were looking at trend-line resistance from September, but soon that will have been cleared as long as we see today’s breakout hold.

Given the healthy length of time the DXY has been consolidating and the trend-line it is climbing above, a rally to the yearly high at 93.43 is anticipated. Taking it one step at a time, if the DXY can reach the 2021 high we will need to monitor price behavior around the level for signs of momentum either pushing it through or leading to failure.

If today’s rally fails it doesn’t necessarily mean the dollar is doomed for lower prices, but it will need to get into gear again and close into fresh multi-month high territory to reignite a bullish bias. A failure to stay in breakout territory/above resistance is seen as a low probability scenario at the moment.

Tactically speaking, as long as a breakout holds up here, then the trading bias is from the long side and will remain so until either we see a failure back below current levels or a strong rejection develops at the yearly high.

US Dollar Index (DXY) Daily Chart

dxy daily chart

DXY Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---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.

DISCLOSURES