Jump to content

USD Technical Analysis: DXY Gunning for New Cycle Highs

Recommended Posts


  • US Dollar Index (DXY) is gunning to create a long-term trend
  • Watch the short-term price action, could have big-picture ramifications


The US Dollar Index (DXY) is working on trading to new cycle highs, and to do so it will need to climb above the May high at 105. A sustained breakout above this level that eventually leads to a monthly closing print above it could have major long-term ramifications.

The range over the past few years appears at serious risk of breaking given the macro landscape has shifted so dramatically in the past couple of years. With ‘all that is going on’ it doesn’t seem likely that the dollar will continue to trade within the same range for much longer.

With that in mind, the May reversal candle we looked at on Friday looks at risk of getting negated as soon as this month. But perhaps not, maybe we see the DXY reverse here shortly around 105 and continue to keep the broader breakout at bay. For now.

This is a macro view with respect to the dollar taking off out of its range, so it could take more time to develop. But again it seems very likely at some point it will make the move.

In the short-term the 105 level will be in focus. A near-term reversal around the level could put longs at risk and give shorts the upper hand even if the general tides are rolling in favor of the dollar. A daily close above 105 doesn’t necessarily imply that longs will maintain the upper hand, however.

A breakout and reverse after becoming extended is still a risk. Trading around major levels like this can get a little tricky, and on that taking a wait-and-see approach may be prudent for the more conservative until we have a little better clarity on how the DXY wants to treat this potentially significant rejection/breakout on a monthly basis.


us dollar index monthly chart


us dollar daily chart

DXY Charts 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. 13th June 2022 | DailyFX

Link to comment

DXY Dollar Index Rock Solid Amid Market Mayhem Ahead of the Fed, BoE and BoJ

Jun 14, 2022 | DailyFX
Daniel McCarthy, Strategist


  • The US dollar has held recent gains as the market awaits the Fed
  • APAC equities are lower but not all risk assets suffered today
  • All eyes on central bank meeting ahead.

Dollar eases as traders scale back bets on Fed tightening

The US Dollar made a 20-year high as markets are still recalibrating in the aftermath of last Friday’s mind-blowing US CPI number.

Some risk assets had some reprieve today with the Aussie, Kiwi and Sterling the notable gainers as markets take a breather ahead of what is shaping up to be a hectic week with many central banks’ meetings.

Wednesday – Federal Reserve
Thursday - Bank of England
Friday – Bank of Japan


The DXY has eclipsed last month’s peak to make a fresh 20-year high today. The next historical high that may offer resistance is at 109.77 from September 2002.

Momentum appears to be bullish with positive gradients on all short, medium and long-term simple moving averages (SMA)

Making this high saw the price move outside the upper band of 21-day SMA based Bollinger Band.A close back inside the band could indicate a potential reversal.

Support might be at 10- and 21-day SMAs, currently at 103.15 and 102.72 respectively.


Chart created in TradingView


Will USD resume its uptrend?

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
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 05/10/23 00:10
  • Posts

    • Summary: Still expecting another low for indices, the current move up part of a corrective rally. Normally I look for indices lead from stocks, however some stocks are displaying strength and some weakness so this mix bag is showing up in the Nasdaq 100 pattern as a probable wave four triangle at the current low. Trading Strategies: Nil Video Chapters 00:00 SP 500 (SPX)  05:02 NASDAQ (NDX) 08:26 Russell 2000 (RUT) 10:43 DAX 40 (DAX) 16:07 FTSE 100 UKX (UK100) 22:15 ASX 200 (XJO) 38:47 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com   Access Trial  
    • A lot of transformation is happening to BNB at the moment with the integration of bitcoin lightning network and Optimism especially with opBNB birth but that has not reflected in users confidence primarily because of the many negativities surrounding the platforms operations in North America and Australia. BGB on the other is gaining traction and value because a lot of investment is going into the development of the ecosystem recently with the injection of $100M and also improved partnership deals
    • I know we still have a lot to do to attract massive crypto adoption but steps like those taken by Binance and bitget in the wake of what happened to FTX is commendable in righting the wrongs of the lapses and loopholes that exist pre-FTX saga. But more still needs to be done to restore confidence to the level it was pre-2020 bear market like consistent regulatory framework and regular security updates by crypto platforms
  • Create New...