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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • (ASEAN Fundy) US Dollar Forecast: Turning Point Reached? USD/SGD, USD/THB, USD/IDR, USD/PHP #USD $USDGSD $USDTHB $USDIDR $USDPHP
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • RT @mkraju: Manchin signaling he’s open to $1.75T for social safety net bill, per source briefed on matter, but it’s unclear where the pric…
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. #DailyFXGuides
  • RT @JournalistRoss: From CNN's @mkraju: The goal among Democratic leaders is to have a vote Wednesday or Thursday on the infrastructure pac…
  • *Reminder: Weekly Strategy Webinar tomorrow at 8:30am ET on @DailyFX !!
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Wow Liverpool...
  • With the $SPX, Bitcoin and Fed 2022 rate forecasts pushing record highs; the heavy economic docket for the coming week will make for some loaded trading potential. The events and markets I'm looking at ahead:
  • 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:
US Dollar Technical Outlook: DXY Charts Look Bullish

US Dollar Technical Outlook: DXY Charts Look Bullish

Paul Robinson, Strategist

USD Technical Outlook

  • DXY working on snapping a familiar price pattern
  • Big test lies ahead on further strength from here

US Dollar Technical Outlook: DXY Undergoing Change in Behavior

This is how I began last week’s USD commentary: The US Dollar Index (DXY) is following a familiar pattern we’ve seen on a few occasions this year – strong rallies that look sustainable but then reverse lower. This pattern appears to be snapping as the support created following the breakout is holding.

The thinking was that for would-be longs, traders should trust support until broken and look it as a possible entry for a trend continuation higher. So far this is looking like a decent setup for the long-side, with the outlook becoming further bolstered by the development of a wedge pattern.

With the wedge formation (best seen on the 4-hr chart) forming just above support and in-line with a clear trend, we should see it break to the upside. It may need a day or two more to fully develop, but if this scenario is to work out then higher levels should come soon.

Another leg up will bring into play an important area of resistance via the March 2020 low that was later validated as resistance in September of last year. The area right around 94.67 could be a difficult one to get through on a first attempt.

But if we are indeed going to see the USD build significantly on its bullish trend then it may only be a minor roadblock. As per usual, watching price action closely will be the key. Volatility or a strong reversal around resistance will dent the bullish outlook, while a clean break through will increase it.

To turn the outlook neutral to negative, the DXY will need to break below 93.67. This action would make for a lower-low below the confluent support that we are currently see act as a backstop.

US Dollar Index (DXY) Daily Chart

dxy daily chart

US Dollar Index (DXY) 4-hr Chart

dxy 4-hr 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.