US Dollar Technical Forecast for the Week Ahead: USD Surges to Resistance

0
0


US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • US Dollar technical trade stage replace – Weekly Chart
  • USD rallies again into uptrend resistance- threat for value inflection forward
  • DXY weekly help 104.88, 103 (key), 101.94 – Resistance 107.51-108.09 (key), 109.29, 110.25

The US Dollar Index surged greater than 2.5% off the month-to-month lows with a breakout of the August opening-range taking DXY again into technical resistance. While the technical outlook stays constructive, the instant advance could also be weak right here and we’re trying for attainable value inflection in the days forward to validate resumption of broader uptrend. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index weekly value. 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 my final US Dollar Weekly Price Outlook we famous that we had been on the trying to validate a low in DXY with, “weekly support now seen at the July monthly open / 1999 high at 104.77/88 – an area of interest for possible downside exhaustion IF reached.” The index briefly registered a low at 104.63 earlier than rebounding sharply greater with the rally breaching the month-to-month opening-range highs on Thursday. The advance is now testing the first main resistance zone at 107.51-108.09– a area outlined by the confluence of the 61.8% Fibonacci retracement of the July decline, the yearly high-week shut, and the 2001 low. Risk for inflection into this area with a weekly shut above wanted to maintain the instant advance viable in the days forward in direction of the yearly highs at 109.29 and the 78.6% retracement of the 2001 decline at 110.25.

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

Bottom line: A breach of the month-to-month opening-range retains the give attention to a late-month excessive in the US Dollar Index – that mentioned, the advance is testing preliminary resistance right here. From at buying and selling standpoint, a very good zone to scale back parts of long-exposure / increase protecting stops – losses needs to be restricted to the August open at 105.82 IF value is certainly heading greater on this stretch. Review my newest US Dollar Short-term Price Outlook for a better have a look at the near-term XAU/USD technical trade ranges.

US Economic Calendar

US Dollar Technical Forecast for the Week Ahead: USD Surges to Resistance

Economic Calendarnewest financial developments and upcoming occasion threat.

Active Weekly Technical Charts

— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here