DXY Coming off Support, Trying to Turn the Corner


USD Technical Outlook

  • US Dollar Index (DXY) is popping increased from assist
  • Correction could also be over if final week’s low can maintain

US Dollar Technical Analysis: DXY Coming off Support, Trying to Turn the Corner

The US Dollar Index (DXY) is popping increased from assist round the 105 stage, and inside the context of a broader uptrend the correction could have ended. It shall be essential, nevertheless, for that to be the case that we see the 104.63 low from final week maintain.

The general value motion since the July peak has smacked of corrective habits, with momentum missing on the pullback. It is feasible we see extra draw back from right here if final week’s low fails, however the expectation at this juncture is it could be extra of the identical uneven, corrective sort value motion.

Looking to the top-side, the first hurdle to cross to flip the current downtrend round clocks in at 10693, a current short-term swing-high. A crossing of that line and the sequence of lower-lows and lower-highs shall be damaged.

The first huge goal to overcome on a rally is the July excessive at 10924. The pondering is that when the correction is over and a rally recommences that we are going to see the 2001 excessive at 121 hit and probably exceeded.

If the current downtrend continues and the DXY fails to cross 10693, then we may even see it fall again to 10342 subsequent. But this might require that final week’s low close to 105 is taken out. For now, working with a bullish buying and selling bias that can strengthen on a crossing of the August 5 excessive.

US Dollar Index (DXY) Daily Chart

DXY Chart by TradingView

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—Written by Paul Robinson, Market Analyst

You can observe Paul on Twitter at @PaulRobinsonFX

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