US Dollar Price Technical Outlook: DXY Weekly Trading Levels

• we Dollar Technical Trade Level Update – Weekly Chart
• USD rally stops in pivot resistance zone – threat of correction
• DXYSupport 95.15, 94.47(bullish cancelation) – To touchresistance 96.50 / 67, 97.70

the US dollar index opens the month / year just below a pivot resistance barrier and the focus is on a possible inflection of this threshold in the coming weeks. While the broader outlook is still constructive, the threat of a near-term correction remains below this key area. These are the updated technical goals and invalidation levels that count on the weekly US Dollar Index price chart. Join my weekly strategy webinars for an in-depth analysis of thisDXY technique configuration and more.

US Dollar Index Price Chart – Weekly DXY

Graphic prepared by Michel Boutros, technical strategist; US dollar index on Tradingview

Remarks: In my last Weekly Price Outlook in US Dollars we noted that a DXY breakout was in progress with a “weekly close above 95.15 needed to mark the rally towards the Median line (currently ~95.70s) and critical resistance to 96.10 / 50– area of ​​interest for possible depletion of the surface if it is reached. The index collapsed in the following weeks, with the DXY posting a closing high of 96.67 in December before falling. Is the dollar about to retreat?

The index rose more than 8.2% from May lows with the biggest correction measuring just 1.9% and although it was not a raison to be bearish, it highlights the seasonal threat of weakness in the USD. With this in mind, the broader perspective always remains constructive although above 94.47 / 65 with initial Support now back to 95.15. Critical resistance is now adjusted to the annual opening of 2020 / maximum closing of 2021 to 96.50 / 67 – a weekly topside / close break above this threshold is needed to mark the rally with such a scenario exposing the midline (currently ~ 97) and the 2018 high / 61.8% Fibonacci retracement of the decline from 2020 to 97.69 / 72.

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At the end of the line : the The rally in the US dollar stuck in a major resistance area at 96.50 / 67. From a business point of view, a good region to reduce long exposures / increase protection stops. Losses should be capped at 94.47 IF the price is indeed heading higher with a breach to the upside from here likely to fuel another rush run towards 97 and beyond. Keep in mind that we still have non-farm payrolls (NFPs) in the US this Friday – look at the weekly close for guidance. i will publish and update Price Outlook in US Dollars once we have more clarity on the technical levels of short-term trading.

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Previous weekly technical charts

— Written by Michel Boutros, Technical strategist with DailyFX

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