Dollar Index Technical Update – July 23rd – DXY Analysis
- The dollar continues to push slowly under the weekly timeframe bearish engulfing candle, as highlighted in our recent DXY technical updates. The US dollar had reached a three-year high versus a basket of currencies prior to the 10/7/13 key reversal day and was trading just under the 0.764 Fibonacci level.
- The DXY is now trading at the 61.8% Fibonacci retrace of the last major swing higher. We also note that cable and EURUSD are trading at key technical areas at present – see our latest analysis updates for the respective currency pairs.
- Any sustained move under this Fibonacci level has the 81.40 area price pivot as a near term focus as this is aligned with the 200 SMA. Further to this – to the downside – is the previous demand area around 80.50 and the 80.00round number.
- We still note that key previous support was found around the 79.00 area.
- Any corrective rally higher has last weeks high around 83.50 as a potential resistance focus.
DXY Weekly Chart
DXY Daily Chart
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