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.



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
US Dollar Technical Outlook: DXY Testing Uptrend, Support

US Dollar Technical Outlook: DXY Testing Uptrend, Support

Paul Robinson,
What's on this page

USD Technical Outlook

  • DXY continues to test the trend and support
  • How price action continues to play out here will determine
USD Forecast
USD Forecast
Recommended by Paul Robinson
Check out the Q4 USD Forecast
Get My Guide

US Dollar Technical Outlook: DXY Testing Uptrend, Support

Since nearing the low (resistance) created back in the early days of the pandemic, the US Dollar as per the DXY index has been backing-and-filling. It has been doing so in what looks to be a corrective manner, but now that support within the context of the uptrend is being thoroughly tested the USD is getting closer and closer to bit of a make or break situation.

For a week now support has been holding via a horizontal level and top-side trend-line running over from August and March, respectively. This is making for a good spot to see the DXY strengthen from, but even if we get a little more weakness to the trend-line from the May low, the broader outlook could still remain bullish.

A turn from here or the trend-line just below would have the mid-94s back in focus as major resistance to overcome if the rally from May is to continue to grow legs. We will of course be monitoring price action should that become relevant.

On the flip-side, if we see price breakdown from here to the trend-line from May it will be important that it holds. A failure to do-so could indicate that the corrective-looking pullback we are seeing now is morphing into an outright trend reversal that could lead to an extended decline.

From a tactical standpoint, we must respect support until it is broken. This means longs still appear more attractive than shorts and support levels can be used to assess risk and setting stop losses for long exposure. Would-be shorts may be best served waiting for support to first break.

Top Trading Opportunities in Q1
Top Trading Opportunities in Q1
Recommended by Paul Robinson
Check out the top trades for this quarter!
Get My Guide

US Dollar Index (DXY) Daily Chart

us dollar index, dxy

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.