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US Greenback Technical Value Outlook: DXY Weekly Commerce Ranges
- US Dollar technical commerce degree replace – Weekly Chart
- USD FOMC rally fuels second check of uptrend resistance- exhaustion threat
- DXY help 103, 101.87/94, 99.45 (key) – Resistance 104.88 (crucial), 106.56, 108.09
The US Dollar Index is poised to shut out a 3rd consecutive weekly advance with DXY buying and selling at 104.72 into the open of US commerce on Friday. A rally to contemporary multi-year highs on the heels of this week’s FOMC rate of interest resolution has light with the dollar as soon as once more struggling to breach uptrend resistance. Whereas the broader out stays constructive, the menace for exhaustion within the days forward retains the give attention to a potential reset for the bulls and a pullback might supply extra favorable alternatives nearer to pattern help. These are the up to date technical targets and invalidation ranges that matter on the US Greenback Index weekly worth chart. Review my latest Strategy Webinar for an in-depth breakdown of thisDXY technical setup and extra.
US Greenback Index Value Chart – DXY Weekly
Chart Ready by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview
Notes: In final month’s US Dollar Weekly Price Outlook we famous that DXY had, “responded to uptrend resistance and whereas the broader commerce stays constructive, the fast advance could also be susceptible right here near-term. From a buying and selling standpoint, be looking out for draw back exhaustion forward of 101.80 IF worth is certainly heading increased on this stretch with a breach / shut above 104.88 wanted to mark resumption of the broader uptrend.” The index briefly registered an intraweek low at 101.30 into the shut of Could earlier than reversing sharply increased with the index failing one other try and breach the 1999 excessive at 104.88 but once more this week. Notice that the upslope derived off the 2021 / 2022 lows (blue) continues to manipulate the stretch highs right here and highlights the menace for a near-term pullback off uptrend resistance.
Preliminary weekly support relaxation with the 61.8% Fibonacci retracement of the Could rally / 2016 high-close at 103 backed by the 23.6% retracement of the 2021 rally / 2020 high-week shut at 101.87/95. Broader bullish invalidation now raised to the 2021 trendline / 38.2% retracement at 99.45. A topside breach / shut above 104.88 is required to mark resumption with subsequent resistance aims eyed on the 1989 excessive at 106.56 and the 2001 low 108.09.
For a whole breakdown of Michael’s buying and selling technique, evaluation his Foundations of Technical Analysis series on Building a Trading Strategy
Backside line: The US Greenback has responded to uptrend resistance for the second time on constructing momentum divergence and as soon as once more highlights the menace for near-term exhaustion within the index. From a buying and selling standpoint, a great time to scale back parts of long-exposure / increase protecting stops – losses must be restricted to 101.87/95 IF the index is certainly heading increased on this stretch. I’ll publish and up to date US Greenback Value Outlook as soon as we get additional readability on the near-term DXY technical commerce ranges.
Lively Weekly Technical Charts
— Written by Michael Boutros, Technical Strategist with DailyFX
Observe Michael on Twitter @MBForex
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