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
  • Heads Up:🇺🇸 Fed Chair Powell Testimony due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Heads Up:🇺🇸 CB Consumer Confidence (SEP) due at 14:00 GMT (15min) Expected: 114.5 Previous: 113.8 https://www.dailyfx.com/economic-calendar#2021-09-28
  • House Rep Speaker Pelosi says the House could vote on debt limit today - politico
  • The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. Get your #crudeoil market update from @nickcawley1 here:https://t.co/vrVxkoVBxQ https://t.co/Qf74MIyEmp
  • Heads Up:💶 ECB Panetta Speech due at 13:45 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • $USD fresh 2021 high didn't get much traction on the first test above resistance, but it's been quite the move since last week. Friday should be a big day for the USD - PCE, ISM and Sentiment numbers https://t.co/TfIp6Z8mBr https://t.co/qtFaKzxHIJ
  • Gold and silver not having a good day so far, rising US Treasury yields is a headwind for precious metals and non-interest bearing assets in general #trading $XAUUSD $XAGUSD
  • US 10-YEAR YIELD RISES TO 1.53%, LAST WEEK IT WAS SITTING BELOW 1.30%. THE RAPID INCREASE IN TREASURY RATES IS BAD FOR TECH STOCKS, NASDAQ AT RISK, $ARKK COULD ALSO SUFFER HEAVY LOSSES #TRADIDG $NDX
  • there it is $USDJPY up for a test of the 2021 high fibo level at 111.61, next major level at 112.50 this zone has held the highs in 2019, 2020 and so far in 2021 https://t.co/PwShmUDOn0 https://t.co/in6dnrIq0Q
  • ...let's see how far the brinkmanship goes and whether the rating agencies feel a rating downgrade is necessary for the constant pressure on its finances
US Dollar Technical Outlook: DXY, Channel in Focus

US Dollar Technical Outlook: DXY, Channel in Focus

Paul Robinson, Strategist

USD Technical Outlook

  • DXY has lost steam, but maintaining upward channel structure for now
  • A breaking of the lower parallel is seen as warranting a bearish outlook

US Dollar Technical Outlook: DXY, Channel in Focus

The US Dollar Index (DXY) has been without momentum the past few weeks, but still working its way higher. It managed to sneak above the September trend-line, but is falling short of the yearly high. The structure in focus right now is most easily seen on the 4-hr time-frame.

The upward grind has created a neat-looking channel that can be used as a guide. Stay within and the bias is neutral to bullish, with the next targeted level on the top-side set at the yearly high of 93.43. But that is looking increasingly unlikely to be seen given the way price is starting to roll over.

Should the lower parallel of the pattern fail the focus will be on the downside. This would be consistent with the trend in place since the March 2020 spike high. A break of the channel will have the area around 92 and 91.50 targeted as the next levels of support. The latter level is not too far away from the 200-day MA at 91.35.

Tomorrow is the FOMC announcement on rates. While rates are expected to remain where they are, future signaling by the Fed could be a near-term maker or breaker of this channel formation.

US Dollar Index (DXY) 4-hr Chart

dxy 4-hr chart

US Dollar Index (DXY) Daily Chart

dxy daily chart

DXY Charts 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