USD Rally Vulnerable- DXY Levels

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US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • US Dollar technical commerce stage replace – Weekly Chart
  • USD rally stalls into pivotal resistance zone- risk for correction
  • DXYhelp 95.15, 94.47(bullish invalidation) – Key resistance 96.50/67, 97.70

The US Dollar Index opens the month / yr just under a pivotal resistance barrier and the main target is on a attainable inflection off this threshold within the weeks forward. Although the broader outlook remains to be constructive, the risk for a near-term correction stays whereas beneath this key zone. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index weekly worth chart. Join my Weekly Strategy Webinars 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 a} breakout in DXY was underway with a, “weekly close above 95.15 needed to mark resumption towards the median-line (currently ~95.70s) and critical resistance at 96.10/50– area of interest for possible topside exhaustion IF reached.” The index ripped the next weeks with DXY registering a high-close at 96.67 in December earlier than pulling again. Is the Dollar poised for a pullback?

The index has rallied greater than 8.2% off the May lows with the most important correction measuring simply 1.9% and whereas this isn’t a cause to be bearish, it does spotlight the seasonal risk for USD weak spot. With that in thoughts, the broader outlook nonetheless stays constructive whereas above 94.47/65 with preliminary help now again at 95.15. Critical resistance is now adjusted to the 2020 yearly open / 2021 excessive shut at 96.50/67 – a topside breach / weekly shut above this threshold is required to mark resumption with such a situation exposing the median-line (at the moment ~97) and the 2018 excessive / 61.8% Fibonacci retracement of the 2020 decline at 97.69/72.

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

Bottom line: The US Dollar rally has stalled into a significant resistance zone at 96.50/67. From a buying and selling standpoint, a great area to scale back long-exposure / increase protecting stops. Losses needs to be restricted to 94.47 IF worth is certainly heading greater with a topside breach from right here prone to gas one other accelerated run in direction of 97 and past. Keep in thoughts we nonetheless have US Non-Farm Payrolls (NFP) on faucet this Friday – look to the weekly shut for steerage. I’ll publish and up to date US Dollar Price Outlook as soon as we get additional readability on the near-term technical commerce ranges.

Key US Data Releases

Key US Data Releases - Key USD Event Risk - Weekly Dollar Data Releases

Economic Calendarnewest financial developments and upcoming occasion threat.

Previous Weekly Technical Charts

— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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