Jump to content

US Dollar Technical Analysis: DXY Nearing Significant Point in Price, Time


Recommended Posts

US Dollar Technical Analysis: DXY Nearing Significant Point in Price, Time

Aug 22, 2022 | DailyFX
Paul Robinson, Strategist

USD TECHNICAL OUTLOOK

  • US Dollar Index (DXY) is nearing the important July high
  • Time is also a factor here as we head towards the fall

US DOLLAR TECHNICAL ANALYSIS: DXY NEARING SIGNIFICANT POINT IN PRICE, TIME
The US Dollar Index (DXY) is nearing the July high at 10929, an important high as the bull cycle looks set to continue. We may not see the dollar break out and run without a set-back, but as we head towards the fall the anticipation is we will see much higher levels.

The timing of this recent round of strength comes as we head towards a weak time of the year for stocks, and with the S&P 500 looking to have already concluded or very near completing a counter-trend summer rally, we could see the resurgence of dollar-on, risk-off in a big way.

The big driver of the DXY is the EUR/USD, accounting for ~57% of the index, and with its initial bounce of parity failing we are seeing parity back in play again. A bounce, likely a smaller iteration this time, could develop in the very near-term, but is seen a likely to fail and lead to levels much lower than parity.

How much lower? The 2000 low at 8231 appears at real risk of being seen in the relatively near future. This would mean a much, much higher DXY of course.

Taking it one step at a time, first thing is first for the DXY – the 10929 high. We may see a failure from there initially, but looking for the pullback to be more of a buying opportunity than a reversal signal.

US DOLLAR INDEX (DXY) DAILY CHART

dxy daily chart

DXY Chart by TradingView

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
      23,076
    • Total Posts
      95,532
    • Total Members
      43,696
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    moose
    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...
us