US Dollar Price Technical Outlook: DXY Short-Term Trading Levels

  • we Dollar Technical Updated Technical Trade Levels – Daily and Intraday Charts
  • USD reverses technical resistance – risk of further short-term losses
  • Weekly opening resistance 93.93 – Short term key support 93.36 / 45, 92.63 / 66

The US dollar index is under pressure for the second week in a row after reversing key technical resistance. While the broader outlook remains constructive, a break in the monthly opening range threatens a larger correction in the days to come with the DXYalready down more than 1% from annual highs. It is the updated technical goals and invalidation levels that rely on the US dollar Index price table. Review my last Strategy webinar for an in-depth analysis of this DXY technique configuration and more.

US Dollar Index Price Chart – DXY Daily

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

Technical perspectives: Last month Price Outlook in US Dollars, we noted that DXY had “established the September open just above the uptrend Support. From a trading perspective, watch the breakout for guidance – watch for downside exhaustion before the 92– handle IF prices fall with a close above the median needed to fuel another key resistance race at high day closes from November / August to 93.40 / 45. “The index hit a low of 92.32 in the following days before soaring with a break in the monthly price aperture range load a rally through 93.40 / 45 resistance level until the end of the month. The rally was capped by resistance to 94.47 / 65 with a break out of the lows of the October opening range today threatens a deeper correction in the greenback in the coming days within the limits of the wider uptrend.

US Dollar Index Price Table – DXY 120min

US Dollar Index Price Chart - DXY 120min - USD Business Outlook - Technical Forecast

Remarks: A closer look at the DXY price action shows the dollar is trading within the confines of an integrated descending fork formation that we followed the September / October highs with the Median line further emphasizing the short-term support for 93.36 / 45. Look for a reaction there IF hit with a breakout below threatening a deeper correction towards the confluence of the trendline highlighted near ~92.85 and the 38.2% retracement of the May / September rally open to 92.63 / 66– the two areas of interest for a possible downward SI exhaustion have been achieved. Initial resistance has now returned to August high at 93.72 supported by the weekly open to 93.93– ultimately, an upward break in this formation would be necessary to mark the resumption of the dollar’s broader bullish trend with such a scenario again targeting the October open to 94.30 and critical resistance in 94.47 / 65.

At the end of the line : A reversal of resistance to the confluent bullish trend of the US dollar threatens a deeper pullback in the days to come as it falls short of this short-term formation. From a trading perspective, look for upside exhaustion before the SI weekly open price is indeed down on this stretch with a break below 93.36 risking another wave of accelerated losses. Ultimately, a larger pullback may offer more favorable opportunities closer to longer term uptrend support. Review my last US dollar Weekly Price Outlook for an in-depth look at longer-term DXY technical trading levels.

For a full description of Michael’s trading strategy, see his Fundamentals of Technical Analysis Series on Bbuild a Tranking Sstrategy

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Key US Economic Calendar - Key US Dollar Data Releases - Weekly USD Event Risk

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– Written by Michel Boutros, Currency strategist with DailyFX

To follow MIchael on Twitter @MBForex

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