Dollar Price Forecast: USD Recovery Eyes Initial Hurdles

The US Dollar rallied more than 0.4% this week with DXY marking the second consecutive weekly advance. The rally takes the index nearly 2% off the monthly lows with the rally now eyeing initial resistance hurdles just higher.

These are the updated technical targets and invalidation levels that matter on the US Dollar Index (DXY) weekly price chart. Review my latest Strategy Webinar for an in-depth breakdown of this Dollar trade setups and more.

In last month’s US Dollar Weekly Price Outlook noted that DXY had, “broken below a multi-week consolidation / the May opening-range lows and keeps the focus lower heading into June.”

The index sold-off more than 2% into the open of the month before rebounding just pips from the 50% retracement of the 2018 advance at 95.62 (low registered at 95.72). Note that the index failed to close below yearly-open support at 96.50 with weekly momentum holding above the 40-threshold.

The recovery is poised to mark its second consecutive weekly advance with the rebound taking DXY back towards the 61.8% Fibonacci retracement of the yearly range at 97.83- Look for initial resistance there.

Ultimately, the near-term rally remains vulnerable while below the 38.2% retracement of the March decline at 98.50 with a break of the lows exposing subsequent support objectives at the 2019 low at 95.03 and the 61.8% retracement / 2016 low-week close at 93.88/92 (critical).

Spread the love

Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

3 thoughts on “Dollar Price Forecast: USD Recovery Eyes Initial Hurdles”

Leave a Comment