US Dollar Short-term Technical Outlook: USD Breakout Pending

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US Dollar Technical Price Outlook: DXY Short-term Trade Levels

  • US Dollar up to date technical commerce ranges – Daily & Intraday Charts
  • USD rebounds forward of uptrend support- focus is on a breakout of August vary
  • DXY weekly assist 104.88, 103.69/82, 103 – Resistance 106.56, 107.52, 108.09

The US Dollar Index is on the offensive early within the week with DXY surging greater than 0.65% on Monday. The rally takes the index again in the direction of resistance on the August vary highs and we’re looking out for a possible breakout for steering within the days forward. These are the up to date technical targets and invalidation ranges that matter on the US Dollar Index worth charts. Review my newest Strategy Webinar for an in-depth breakdown of thisDXY technical setup and extra.

US Dollar Index Price Chart – DXY Daily

Chart Prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Technical Outlook:In our final US Dollar Index Technical Forecast we famous, “weekly support is now seen at the July monthly open / 1999 high at 104.77/88 – an area of interest for possible downside exhaustion IF reached.” DXY turned off lateral assist / simply forward of the yearly uptrend final week at and the rebound retains the give attention to a breakout of the August opening-range for steering. Ultimately, a topside breach / shut above the yearly high-day shut at 108.63 is required to mark resumption of the broader uptrend in the direction of the yearly excessive (109.29) and 110.25.

US Dollar Index Price Chart – DXY 240min

US Dollar Index Price Chart - DXY 240min - USD Short-term Trade Outlook - Dollar Technical Forecast

Notes: A more in-depth take a look at DXY worth motion reveals the index buying and selling throughout the confines of a proposed ascending pitchfork formation extending off the month-to-month lows. Its too early to depend on this slope simply but, however the focus stays on assist forward of the weekly open at 105.67on pullbacks IF worth is heading larger on this stretch. A topside breach of the month-to-month vary would expose subsequent resistance targets on the 61.8% Fibonacci retracement of the July decline at 107.51 backed by the 2001 low at 108.09 – each ranges of curiosity for attainable topside exhaustion / worth inflection IF reached.

Near-term bullish invalidation set to 104.88– a break / shut beneath this threshold would threaten a bigger correction within the Dollar with such a state of affairs exposing the 38.2% retracement of the yearly vary / 2017 excessive at 103.69/82.

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

Bottom line: The US Dollar Index has set the month-to-month opening-range simply above uptrend support- we’re on breakout watch. From at buying and selling standpoint, look to scale back parts of long-exposure / increase protecting stops on a stretch in the direction of 106.56- losses needs to be restricted to the weekly open IF worth has extra on this stretch. Review my newest US Dollar Index Weekly Price Outlook for a better take a look at the longer-term DXY technical commerce ranges.

US Economic Calendar

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

Economic Calendarnewest financial developments and upcoming occasion danger.

Active Technical Setups

— Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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