US Dollar Technical Price Outlook: DXY Weekly Trade Levels
- US Dollartechnical trade level update – Daily & Intraday Charts
- USD snaps two-week winning streak – monthly range is preserved
- DXY bears vulnerable while above 92.28– bearish invalidation steady at 94.65
The US Dollar is off more than 0.35% this week with the DXY snapping a two-week winning streak after rebounding off long-term trend support. While the broader outlook remains weighted to the downside, the risk remains for a near-term recovery in the greenback as the index responds to long-term uptrend support. These are the updated technical targets and invalidation levels that matter on the US Dollar Index weekly price chart. Review my latest Strategy Webinar for an in-depth breakdown of this DXY technical setup and more.
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US Dollar Index Price Chart – DXY Weekly
Notes: In last month’s US Dollar Weekly Price Outlook we noted that the DXY sell-off was, “testing slope support at fresh multi-year lows and while the risk remains weighted to the downside, the immediate decline may be vulnerable here.” The level in focus was the 2018 yearly open at 92.28– this threshold held on a close basis with the index registering an intra-week low at 91.75 into the start of September. A rally of more than 2% off the lows failed last week with the index trading into the mid-month range heading into the close of the week.
Initial weekly resistance stands at the 61.8% Fibonacci retracement off the 2018 advance / 2016 low-week close at 93.88/92 with a breach above the March lows at 94.65 needed to suggest a larger recovery is underway. Initial support steady at 92.28 backed by the 2016 swing low at 91.92– ultimately a break / close below the 2017 low-week close / 78.6% retracement at 91.33/40 is needed to mark resumption of the broader downtrend with such a scenario risking accelerated losses for the greenback towards the 2018 lows.
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Bottom line: The US Dollar has responded to long-term technical support but keeps the index within the confines of the September opening-range. From a trading standpoint look for downside exhaustion ahead of 92.28 IF price is heading higher with a close above 94.65 needed to fuel a larger recovery. Ultimately, a larger recovery may offer more favorable opportunities closer to slope resistance within then yearly US Dollar downtrend.
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— Written by Michael Boutros, Technical Strategist with DailyFX
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