US Dollar Short-term Technical Outlook: USD Breakout Pending


US Dollar Technical Price Outlook: DXY Short-term Trade Levels

  • US Dollar up to date technical trade ranges – Daily & Intraday Charts
  • USD rebounds forward of uptrend support- focus is on a breakout of August vary
  • DXY weekly help 104.88, 103.69/82, 103 – Resistance 106.56, 107.52, 108.09

The US Dollar Index is on the offensive early within the week with DXY surging greater than 0.65% on Monday. The rally takes the index again in direction of resistance on the August vary highs and we’re looking out for a possible breakout for steering within the days forward. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index worth charts. Review my newest Strategy Webinar for an in-depth breakdown of thisDXY technical setup and extra.

US Dollar Index Price Chart – DXY Daily

Chart Prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Technical Outlook:In our final US Dollar Index Technical Forecast we famous, “weekly support is now seen at the July monthly open / 1999 high at 104.77/88 – an area of interest for possible downside exhaustion IF reached.” DXY turned off lateral help / simply forward of the yearly uptrend final week at and the rebound retains the concentrate on a breakout of the August opening-range for steering. Ultimately, a topside breach / shut above the yearly high-day shut at 108.63 is required to mark resumption of the broader uptrend in direction of the yearly excessive (109.29) and 110.25.

US Dollar Index Price Chart – DXY 240min

US Dollar Index Price Chart - DXY 240min - USD Short-term Trade Outlook - Dollar Technical Forecast

Notes: A better have a look at DXY worth motion reveals the index buying and selling inside the confines of a proposed ascending pitchfork formation extending off the month-to-month lows. Its too early to depend on this slope simply but, however the focus stays on help forward of the weekly open at 105.67on pullbacks IF worth is heading greater on this stretch. A topside breach of the month-to-month vary would expose subsequent resistance goals on the 61.8% Fibonacci retracement of the July decline at 107.51 backed by the 2001 low at 108.09 – each ranges of curiosity for potential topside exhaustion / worth inflection IF reached.

Near-term bullish invalidation set to 104.88– a break / shut under this threshold would threaten a bigger correction within the Dollar with such a situation exposing the 38.2% retracement of the yearly vary / 2017 excessive at 103.69/82.

For an entire breakdown of Michael’s buying and selling technique, evaluation his Foundations of Technical Analysis sequence on Building a Trading Strategy

Bottom line: The US Dollar Index has set the month-to-month opening-range simply above uptrend support- we’re on breakout watch. From at buying and selling standpoint, look to scale back parts of long-exposure / increase protecting stops on a stretch in direction of 106.56- losses ought to be restricted to the weekly open IF worth has extra on this stretch. Review my newest US Dollar Index Weekly Price Outlook for a more in-depth have a look at the longer-term DXY technical trade ranges.

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— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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