Technical Outlook:
- USD Dollar Index (DXY) at big long-term spot
- GBP/USD rising into major 13500 level
US Dollar Index (DXY) could be on the verge of accelerating lower as major long-term support is looking set to break. Support we looked at from 1998 (yes, all the way back to 1998) and the trend-line from 2011 are right in the vicinity of current price action. The 2011 trend-line despite it only having the bare minimum to make a trend-line (two connecting points) is re-enforced by a parallel to it that was highly influential over the years, most recently from 2017 to 2019.
DXY Weekly Chart (big crossroad)
U.S. Dollar Currency Index (DXY) Chart by TradingView
GBP/USD is running towards a major crossroad of its own via the 2007 downtrend line and 2009 low. The 2009 low acted as resistance again back in December. The crossing of these two major thresholds could make the coming days and weeks very significant from a big-picture standpoint.
GBP/USD Weekly Chart (13500 major level)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
