US dollar technical price outlook: DXY weekly commodity levels
- USA Dollar technical trade level update – weekly schedule
- USD price drop stops in case of critical resistance merger – risk of infection out 92.28 / 46
- DXY weekly support at 91.83, 90.82 (key) – Top violation reveals 93 and 93.88
The US dollar index rose more than 2.8% last month when the rally stopped with the main resistance to the opening of July – we are looking for a price curve below this threshold with risk bulls. These are updated technical targets and repeal levels that are important to the Fed’s weekly index of the US dollar index. Overview my last Strategy webinar for its thorough distribution DXY technical setup and more.
US dollar index price chart – DXY week
Notes: Last month’s Outlook for US dollar weekly prices we noted that DXY defended its annual open support at 89.93 for more than a month and leaves the wider short prejudice vulnerable when it is up. “The index rose more than 3.7% in the following weeks, when the rally was currently below the critical obstacle range 92.28 / 46– an area defined by the annual 2018 open and 23.6% Fibonacci Reversing the 2020 decline. The price has been lower than this downstream zone for the last four weeks, including July opening area taking shape just below.
Initial week ssupport based on a 52 – week moving average, (currently ~91.83) bullish the repeal now rose retroactively to 61.8% in 2021/2018 90.82-91.01 – look for negative exhaustion in the coming weeks in front of this zone, if the price really rises higher, the violation / weekly close higher reveals the following resistance high week each year to achieve its goals 93.01 and closing the low week of 2016 at 93.88.
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Bottom line: The The US dollar rally has stood in the face of smooth resistance here, leaving May’s progress vulnerable, falling below 92.46. From a trading point of view, it is a good zone for reducing long-term exposure / increasing protection stops – look for exhaustion below 91 if the top exceeds the index relative to the annual high. Post updated US dollar price outlook if we get further clarity on the level of short-term technical DXY trading.
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– Written Michael Boutros, DailyFX Technical Strategist
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