(MENAFN- DailyFX) US Dollar price recovery testing near-term resistance pivot- broader risk lower sub-98.40 Check out our 2019 projections in ourFree DailyFX USD Trading Forecasts Join Michael for Live Weekly Strategy Webinars onMondays at 12:30GMT
TheUS DollarIndex turned just ahead of uptrend support last week with the recent rebound threatening larger recovery in price. These are the updated targets and invalidation levels that matter on theDXYcharts heading into the close of the week.Review this week's Strategy Webinarfor an in-depth breakdown of thisoilprice setup and more.
New to ForexTrading? Get started with thisFree Beginners Guide
US Dollar Price Chart – DXY Daily
Chart Prepared byMichael Boutros , Technical Strategist;US Dollar Index on Tradingview
Technical Outlook: In my latestUS Dollar Weekly Price Outlookwe noted that, 'DXY turned from big resistance last week and IF this pullback is the start of a larger correction, look for resistance ahead of 97.87.' Price turned just ahead of confluence support last week with the rebound now trading within the 97.71/87 resistance zone- look for a reaction here.
Why does the average trader lose?Avoid these Mistakes in your trading
US Dollar Price Chart – DXY 120min
Chart Prepared byMichael Boutros , Technical Strategist;US Dollar Index on Tradingview
Notes: A closer look at DXY price action shows the index trading within the confines of a broad ascendingpitchfork formationextending off the June lows with the weeklyopening-rangenow taking shape just below the confluence resistance at 97.87- a region defined by the 61.8% retracement of the 2017 decline and the 38.2%retracementof the August range.
A breach above this region would expose topside resistance objectives at 98.07/12 backed by the median-line / 61.8% retracement at 98.27- look for a reaction there IF reached. Ultimately a topside breach / close above the yearly high-day close at 98.40 would be needed to mark resumption of the broader up-trend. Support steady at the 97.21 with a break below 97.02 needed to suggest a more significant high was registered this month. Such a scenario would have us targeting initial support objectives at 96.52.
Learn how to Trade with Confidence in our Free Trading Guide
Bottom line: The US Dollar is testing near-term resistance here – IF broken, look for a larger recovery towards the median-line / uptrend resistance. From a trading standpoint, a good place to raise protective stops – ultimately, a larger recovery would have us looking for possible exhaustion / favorable short-entries on a stretch higher towards 98.27.
For a complete breakdown of Michael's trading strategy, review hisFoundations of Technical Analysis series on Building a Trading Strategy
---
Relevant US Data Releases
Economic Calendar- latest economic developments and upcoming event risk.
Active Trade Setups Gold Price Targets: XAU/USD at Critical Resistance – Trade OutlookEuro Technical Price Outlook: EUR/USD Near-term Breakout ImminentAussie Price Outlook: Is the Australian Dollar Recovery Real?Oil Price Outlook: Crude Spills into Support – WTI Trade LevelsCanadian Dollar Price Chart: USD/CAD Breakout Stalls at Six-Week High
- Written byMichael Boutros , Currency Strategist with DailyFX
Follow Michael on Twitter@MBForex
DailyFX
MENAFN1408201900760000ID1098883017
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.