US Dollar Technical Price Outlook: DXY Weekly Trade Levels
- US Dollar technical trade degree replace – Weekly Chart
- USD exhausts into uptrend resistance- threat for deeper pullback heading into FOMC
- DXY weekly help 104.77/88, 103 (key), 101.94 – Resistance 108.09, 110.25 (key), 111.31
The US Dollar Index snapped a three-week successful streak with the DXY off greater than 1.5% to trade at 106.48 forward of the US shut on Friday. The decline comes on a heels of a reversal off technical resistance and whereas the broader outlook stays constructive, a deeper correction could already be underway throughout the broader uptrend. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index weekly worth chart heading into subsequent week’s essential FOMC rate of interest resolution. Review my newest Strategy Webinar for an in-depth breakdown of thisDXY technical setup and extra.
US Dollar Index Price Chart – DXY Weekly
Chart Prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview
Notes: In final month’s US Dollar Weekly Price Outlook we famous that the DXY, “rally has accelerated into uptrend resistance and stabilization above 108 is needed to keep the immediate advance viable in the weeks ahead.” In intraweek stretch into slope resistance (blue trendline) failed with the index unable to shut above the 2001 low at 108.09. The subsequent reversal has already plunged greater than 2.9% off the yearly highs and the main focus is on this correction throughout the broader yearly uptrend.
Initial weekly help is now seen on the July month-to-month open / 1999 excessive at 104.77/88 – an space of curiosity for potential draw back exhaustion IF reached. Broader bullish invalidation stays regular on the 2019 excessive shut at 103. A topside breach / shut above 108.09 continues to be wanted to mark resumption of the broader uptrend with such a state of affairs exposing subsequent resistance goals on the yearly excessive (109.29) and the 78.6% Fibonacci retracement / higher parallel at 110.25– on the lookout for a bigger response in worth there IF reached.
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Bottom line:The US Dollar is susceptible to additional losses on the again of this exhaustion excessive with the FOMC curiosity rated resolution on faucet subsequent week. From at buying and selling standpoint, the risk is for a deeper correction throughout the broader uptrend – we’re looking out for draw back exhaustion forward of 104.77/88 IF worth continues to be heading increased on this stretch. Ultimately, a steeper pullback could provide extra favorable alternatives nearer to pattern help. Keep in thoughts the extremely anticipated Fed fee resolution is on faucet subsequent and is more likely to gas added volatility within the greenback- keep nimble into the discharge. I’ll publish and up to date US Dollar Price Outlook as soon as we get additional readability on the short-term DXY technical trade ranges.
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— Written by Michael Boutros, Technical Strategist with DailyFX
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