Skip to Content
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
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
USD Forecast
USD Forecast
Recommended by Paul Robinson
Check out the Q3USD Forecast
Get My Guide

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.

Top Trading Opportunities in Q4
Top Trading Opportunities in Q4
Recommended by Paul Robinson
Check out the top trades for this quarter!
Get My Guide

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