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US Dollar Reverses From Resistance- Recovery to Offer Opportunity
Earlier this month we highlighted a key resistance level in the US Dollar Index (DXY) with our ‘bottom line’ noting that, “From a trading standpoint, the immediate focus is on possible price exhaustion on a push higher towards down-slope pitchfork resistance near 96.13.” The index registered a high at 96.16 last week before reversing sharply with the decline now testing near-term support targets. We’ll also be tracking US Treasury yields this week with the TNX (10Yr Yields) responding to long-term slope resistance last week. Still standing clear of the commodity currencies for now- but there are some major levels we’ll be tracking for guidance. Here are the targets and invalidation levels that matter this week.
Key Levels in Focus
DXY – Interim support targets at 94.71/85 – Resistance at 95.61 with bearish invalidation steady at 96.13.
USD/JPY – Key near-term support at 111.60- break lower would expose 111.30 & 110.76. Resistance at112.25 & 112.65 (bearish invalidation at 113.27).
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Key Event Risk This Week
Economic Calendar - latest economic developments and upcoming event risk
Active Trade Setups in Play:
- Gold Price Outlook: Risk Sell-off to Fuel XAU/USD Breakout
- GBP/USD Price Outlook: Sterling Trade Levels for the Pending Breakout
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at email@example.com