FOMC IS UPCOMING - FORECAST FOR THE USD- DXY trade
TECHNICAL PRICE FORECAST FOR THE UNITED STATES DOLLAR: DXY WEEKLY TRADE LEVELS
Updated technical trade levels for the US Dollar – Weekly Chart
USD rebound lags as we approach the annual open — the FOMC will take center stage next week.
95.15, 94.47 ( bullish invalidation) – 96.50/67, 97.70 –
THIS WEEK, the US Dollar Index gained 0.46 percent, trading at 95.60 ahead of Friday's US closing. The rise puts the index inside its January range, and attention now turns to the Federal Reserve's interest rate decision next week, which will guide the more significant 2021 rally. These are the most recent technical objectives and invalidation levels that matter on the weekly price chart of the US Dollar Index . Review my most recent Strategy Webinar for a detailed examination of this DXY technical configuration and others.
PRICES OF THE US DOLLAR INDEX – DXY WEEKLY
"The US Dollar rise has halted into a significant resistance zone at 96.50/67," we said. This is an excellent place to minimize long exposure and increase protective stops from a trading perspective. If the price is headed upward, losses should be restricted at 94.47..." On January 14th, DXY reached a low of 94.62 before reversing dramatically, with the index positioned to conclude the week barely below the annual open of 95.67. The Fed's stage has been set.
Look for resistance along the upper parallel (blue downslope currently near 96), with critical resistance remaining at 2020 yearly open / 2021 weekly high-close at 96.50/67 – a breach / weekly close above this level would validate a more significant greenback breakout, exposing the 2018 swing high / 61.8 percent Fibonacci retracement of the 2020 decline at 97.69/72.
Initial support remains with the October 2017 high at 95.15 with bullish at 38.2% retracement of the 2020 decline / March 2020 low at 94.47/65- losses below this threshold would mark a break of the 2021 uptrend and could fuel an accelerated decline for the dollar.
The battle lines have been established for the US Dollar ahead of Fed week, focusing on a breakthrough of the monthly range for guidance and the broader picture remaining bullish above 94.47. From a trading perspective, keep an eye out for probable downward exhaustion next week, as the FOMC rate decision will almost certainly feed the directional break.
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Updated technical trade levels for the US Dollar – Weekly Chart
USD rebound lags as we approach the annual open — the FOMC will take center stage next week.
95.15, 94.47 ( bullish invalidation) – 96.50/67, 97.70 –
THIS WEEK, the US Dollar Index gained 0.46 percent, trading at 95.60 ahead of Friday's US closing. The rise puts the index inside its January range, and attention now turns to the Federal Reserve's interest rate decision next week, which will guide the more significant 2021 rally. These are the most recent technical objectives and invalidation levels that matter on the weekly price chart of the US Dollar Index . Review my most recent Strategy Webinar for a detailed examination of this DXY technical configuration and others.
PRICES OF THE US DOLLAR INDEX – DXY WEEKLY
"The US Dollar rise has halted into a significant resistance zone at 96.50/67," we said. This is an excellent place to minimize long exposure and increase protective stops from a trading perspective. If the price is headed upward, losses should be restricted at 94.47..." On January 14th, DXY reached a low of 94.62 before reversing dramatically, with the index positioned to conclude the week barely below the annual open of 95.67. The Fed's stage has been set.
Look for resistance along the upper parallel (blue downslope currently near 96), with critical resistance remaining at 2020 yearly open / 2021 weekly high-close at 96.50/67 – a breach / weekly close above this level would validate a more significant greenback breakout, exposing the 2018 swing high / 61.8 percent Fibonacci retracement of the 2020 decline at 97.69/72.
Initial support remains with the October 2017 high at 95.15 with bullish at 38.2% retracement of the 2020 decline / March 2020 low at 94.47/65- losses below this threshold would mark a break of the 2021 uptrend and could fuel an accelerated decline for the dollar.
The battle lines have been established for the US Dollar ahead of Fed week, focusing on a breakthrough of the monthly range for guidance and the broader picture remaining bullish above 94.47. From a trading perspective, keep an eye out for probable downward exhaustion next week, as the FOMC rate decision will almost certainly feed the directional break.
Find More on Mitrade