US Dollar Technical Price Outlook: DXY Weekly Trade Levels
- US Dollartechnical trade stage replace – Weekly Chart
- USD correction off uptrend resistance in focus- risk stays for deeper correction sub-108
- DXY weekly assist 104.88, 103 (key), 101.94 – Resistance 107.67-108.09 (key), 110.25, 111.31
The US Dollar Index snapped a two-week shedding streak with the DXY rallying greater than 0.75% to trade at 106.66 forward of the US shut on Friday. A blow-out US Non-Farm Payroll report helped gasoline a late-week surge with the index set to shut close to the weekly highs. Despite the positive factors, it’s not clear whether or not the technical correction off uptrend resistance has been accomplished and the focus heading into subsequent week is on attainable worth inflection into resistance simply larger. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index weekly worth. 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 was in danger, “for a deeper correction within the broader uptrend – we’re on the lookout for downside exhaustion ahead of 104.77/88 IF price is still heading higher on this stretch.” Price registered a low at 105.04 into the August open earlier than rebounding greater than 1.7% – is that this the onset of pattern resumption or does the correction have additional to go? We’re trying for steerage in early-month worth motion right here.
Initial weekly assist Initial weekly assist is now seen at the July month-to-month open / 1999 excessive at 104.77/88 – an space of curiosity for attainable draw back exhaustion IF reached. Broader bullish invalidation is unchanged at the 2019 high-close close to 103. Key weekly resistance stands with eh 61.8% Fibonacci retracement of the July decline / yearly high-week shut / 2001 low at 107.67-108.09– a breach / weekly shut above is required to mark resumption of the broader uptrend in the direction of 110.
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Bottom line:The focus is on this early-month US Dollar rebound- IF the correction off uptrend resistance is full, losses must be restricted to the goal month-to-month open at 105.82. From a buying and selling standpoint, the risk stays for a deeper correction / check of uptrend assist earlier than resumption – look to scale back long-exposure / elevate protecting stops on a stretch in the direction of 107.67-108 IF reached. Ultimately, a bigger pullback might provide extra favorable alternatives nearer to pattern assist. I’ll publish and up to date US Dollar Short-term 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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