US Dollar Technical Forecast for the Week Ahead: USD Rises…

(MENAFN- DailyFX) US Dollar Technical Price Outlook: DXY Weekly Trade Levels

  • US Dollar Trade Level Technical Update – Weekly Chart
  • USD regains resistance on the upside – risk of price inflection ahead
  • DXY Weekly Support 104.88, 103 (key), 101.94 – Resistance 107.51-108.09 (key), 109.29, 110.25

Advertising

The US Dollar Index jumped more than 2.5% from monthly lows with a breakout of the August opening range bringing DXY back to technical resistance. Although the technical outlook remains constructive, the immediate advance may be vulnerable here and we are looking for a possible price inflection in the days ahead to validate the resumption of a broader uptrend. It is the updated technical targets and invalidation levels that matter for the weekly price of the US Dollar Index. Check out my latest strategy webinar for a detailed walkthrough of this DXY technical setup and more.

US Dollar Index Price Chart – DXY Weekly

Chart prepared by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Notes: In my last weekly US Dollar price outlook, we noted that we were looking to validate a DXY low with “weekly support now seen at July monthly open / 1999 high at 104, 77/88 – an area of ​​interest for possible Downside SI exhaustion reached.The index briefly bottomed at 104.63 before bouncing significantly higher as the rally broke past monthly range-opening highs on Thursday The advance is now testing the first major resistance zone at 107.51-108.09 – a region defined by the confluence of the 61.8% Fibonacci retracement of the July low, the yearly close of the week high and the 2001 low. Inflection risk in this region with a weekly close above needed to keep the immediate advance viable in the days ahead towards the yearly highs at 109.29 and the 78.6% retracement of the drop from 2001 to 110.25.

For a full analysis of Michael’s trading strategy, check out his Fundamentals of Technical Analysis series on Developing a Trading Strategy.

Bottom Line: A breakout of the monthly opening range keeps focus on a month-end high in the US Dollar Index – that said, the advance is testing initial resistance here. From a trading standpoint a good area to cut portions of long exposure/increase protective stops – losses should be limited at the August open at 105.82 IF price is indeed heading higher on this section. Review my latest short-term US Dollar price outlook for a more in-depth look at short-term XAU/USD technical trade levels.

US economic calendar

Economic Calendar – latest economic developments and upcoming event risk.

Active Weekly Technical Charts

  • Gold Silver
  • S&P 500, Nasdaq, Dow
  • Crude oil (WTI)
  • Canadian dollar (USD/CAD)
  • US Dollar Index (DXY)
  • Euro (EUR/USD)
  • British pound (GBP/USD)

— Written by Michael Boutros, Technical Strategist at DailyFX

Follow Michel on Twitter @MBForex

MENAFN21082022000076011015ID1104730827


Legal disclaimer: MENAFN provides the information “as is” without warranty of any kind. We assume no responsibility for the accuracy, content, images, videos, licensing, completeness, legality or reliability of any information in this article. If you have any complaints or copyright issues related to this article, please contact the provider above.

Comments are closed.