Jump to content

US Dollar Technical Analysis: DXY Outlook in Limbo


Recommended Posts

USD TECHNICAL OUTLOOK

  • US Dollar Index (DXY) trying to reclaim the upward trend
  • Support and resistance in play that will help shape outlook
US Dollar Technical Analysis: DXY Outlook in Limbo

US DOLLAR TECHNICAL ANALYSIS: DXY OUTLOOK IN LIMBO

The US Dollar Index (DXY) is currently bouncing from around a level that began as important back in March 2020. The low (94.67) during the initial days of the pandemic has been in play on two occasions since, with the most recent occurrence coming around the October high.

The question right now is whether short-term strength is a bounce or the beginning of a resumption of the uptrend from the May low. The trend-line from that low was recently broken, but current strength is pushing price back above. A full recapture of broken trend support could have the upward trend resume, however, confidence is still low on that scenario.

At the moment the DXY is finding difficulty in climbing above resistance via the range that developed from late November until last week. This could create a short-term ceiling around 95.55 even if the index is to continue pushing onward.

As you can see, based on trend direction and levels there is a bit of crosswinds to contend with that make getting any conviction difficult. The low (94.62) from last week at the March 2020 level makes for an interesting spot of support given it is also below the trend-line from May.

A break below that level would be seen as a materially bearish event. A hold of the level for now really only suggests the bias is neutral at this juncture, not necessarily bullish. Will wait for further developments before drawing any concrete conclusions.

 

US DOLLAR INDEX (DXY) DAILY CHART

dxy daily chart

DXY Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

 

Written by Paul Robinson, Market Analyst. 18th Jan 2022. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Catizen does seem like an intriguing project within the TON blockchain ecosystem. Its focus on decentralized identity and secure data sharing could potentially drive significant innovation. 
    • Elliott Wave Analysis TradingLounge Daily Chart, Cardano / U.S. dollar(ADAUSD) ADAUSD Elliott Wave Technical Analysis  Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave ((1)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid level:  Details: the five-wave Increase of wave ((1)) Cardano / U.S. dollar(ADAUSD)Trading Strategy: Cadarno's outlook looks like the Wave 1 rally is likely to end. The price is entering a correction in Wave 2, likely to test the 61.8%(0.365) level of Wave 1 before rising again in Wave 3, so wait for the correction to complete for an opportunity to join the trend again. Cardano / U.S. dollar(ADAUSD)Technical Indicators: The price is below the MA200 indicating a Downtrend, The Wave Oscillator is a Bullish Momentum.   Elliott Wave Analysis TradingLounge H4 Chart, Cardano / U.S. dollar(ADAUSD) ADAUSD Elliott Wave Technical Analysis  Function: Follow Trend Mode: Motive Structure: Impulse Position: Wave ((1)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid level:  Details: The rally in Wave 1 is likely to end, watch out for a correction in Wave 2. Cardano / U.S. dollar(ADAUSD)Trading Strategy: Cadarno's outlook looks like the Wave 1 rally is likely to end. The price is entering a correction in Wave 2, likely to test the 61.8%(0.365) level of Wave 1 before rising again in Wave 3, so wait for the correction to complete for an opportunity to join the trend again. Cardano / U.S. dollar(ADAUSD)Technical Indicators: The price is below the MA200 indicating a Downtrend, The Wave Oscillator is a Bearish Momentum.   Technical Analyst : Kittiampon Somboonsod Source : Tradinglounge.com get trial here!  
    • Stock Market Indices Overview: S&P 500, NASDAQ 100, RUSSELL 2000, DAX 40, FTSE 100, ASX 200 Featuring Elliott Wave Technical Analysis Elliott Wave Analysis Indices: Wave Four SP500 and NASDAQ In this analysis, we delve into the current Wave Four patterns observed in the S&P 500 and NASDAQ indices. We explore potential short-term and long-term outcomes, highlighting the possibility of the correction completing in the next trading session. Following a brief dip, we anticipate a market uptrend; however, confirmation is needed to determine if this move is corrective or impulsive. Short-term traders are advised to trade cautiously. Additionally, we examine AAPL and NVDA, supporting the expectation of a low in the next session. Video Chapters  00:00 SP 500 (SPX), SPY ETF 14:57 NASDAQ (NDX), QQQ ETF 18:19 Russell 2000 (RUT) IWM ETF 20:13 DAX 40 (DAX) 24:52 FTSE 100 UKX (UK100) 25:52 S&P/ASX 200 (XJO) 28:29 End Analyst Peter Mathers TradingLounge Source: tradinglounge com   
×
×
  • Create New...
us