DXY Soars As FOMC Fuels Major USD Breakout
US Dollar Price Technical Outlook: DXY Short-Term Trading Levels
- we Dollar Updated Technical Trade Levels – Daily and Intraday Charts
- USD Post-fed Breakout tests major Fibonacci barrier to uptrend resistance
- Support envisaged at 91.39, constructive above 91 – Key resistance 91.95 (inflection zone)
the US dollar index jumped more than 2.6% from May lows with the post-FOMC a breakout fueling a rally to new multi-month highs. The advance is now approaching the first major obstacle to the confluent resistance to the uptrend and we are looking for a reaction on a higher stretch to get advice with a broader constructive outlook above the 91 handle. These are the technical targets. updated and invalidation levels that rely on the US dollar price table before the end of the week. See again my last Strategy webinar for an in-depth analysis of this DXY technique configuration and more.
US Dollar Index Price Chart – DXY Daily
Graphic prepared by Michel Boutros, technical strategist; US dollar index on Tradingview
Technical perspectives: Last month Price Outlook in US Dollars we noted that the USD, “the sell has stalled with the index threatening a weekly doji off target annual open support. From a business point of view, a good region to reduce short exposures / lower protective stops. “DXY spent five weeks testing the reviews Support at 89.93 with many attempts failing to score a single weekly close below.
yesterday’s FOMC– the induced rally fueled a break above the weekly / monthly aperture range highs with the lead now targeting key resistance at 61.8% Fibonacci retracement of the decline from the end of March to 91.95– the immediate advance may be vulnerable below this threshold. Daily support is based on Median line / 100-day moving average near 91-manipulate with bullish invalidation now extended to 90.58.
US Dollar Index Price Table – DXY 240min
Notes: A closer look at the DXY price action shows that the index is probing the upper parallel today at the start of US trade with the 61.8% retracement just higher. Initial support is now based on 91.39 / 48 supported by the midline – both levels of interest for possible downward SI depletion are met. A breach on the rise / close above 91.95 would be needed to fuel the greenback’s next higher stage with such a scenario exposing the resistance goals to 92.46 and 92.60.
At the end of the line : The Fed’s breakout of the US dollar could be vulnerable to just higher key Fibonacci resistance. From a business perspective, look to reduce long exposure / increase protective stops on a stretch towards handle 92 – losses should be limited by the midline IF the price is indeed on the rise with an upward breach likely to fuel another accelerated race. Review my last US dollar Weekly Price Outlook for an in-depth look at longer-term DXY technical trading levels.
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– Written by Michel Boutros, Currency strategist with DailyFX
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