USD Technical Outlook
- US Greenback Index (DXY) is in place to put up a significant lower-high if it might’t preserve going right here
- If we don’t see a tough flip then a full retest of latest highs and better might quickly be in retailer
US Greenback Technical Evaluation: At an Vital Cross-road
The US Greenback Index (DXY) is at a essential spot and time limit given the latest sharp flip off long-term slope resistance. Momentum is beginning to flip again to the draw back after a strong rise, and on that the greenback might be within the means of posting a significant decrease excessive.
If that is so then we might even see one other spherical of weak spot just like what we simply noticed lately. It doesn’t essentially imply that the greenback has turned within the intermediate-term, however there could also be a chance for merchants USD shorts.
Falling again to 109/108 space would in fact be a significant decline to reap the benefits of, however inside the broader scope of the uptrend it wouldn’t be seen as damaging. Nothing goes straight up or down.
On the flip-side, the greenback could solely dip modestly, or under no circumstances, earlier than working increased to check and presumably break the latest excessive at 11478. A breakout of that stage could be important given the long-term slope that’s in place.
All-in-all, longs are beginning to have a look at danger right here popping out of the low final week if we will see a bit extra of a flip down right here, whereas would-be shorts who’ve been trying to reap the benefits of greenback weak spot could achieve the higher hand within the days to return.
US Greenback Index (DXY) Weekly Chart
US Greenback Index (DXY) Every day Chart
DXY Chart by TradingView
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—Written by Paul Robinson, Market Analyst
You’ll be able to comply with Paul on Twitter at @PaulRobinsonFX
DailyFX supplies foreign exchange information and technical evaluation on the tendencies that affect the worldwide foreign money markets.