Dollar Index Technical Analysis – WC July 1st – USDX Update
- The dollar index has spent the later part of this past week trading around the 83.40 area price pivot zone, after finding an element of resistance at this USDX technical area of interest.
- When referencing the USDX weekly chart we note that price has closed near the weekly range high.
- The daily chart (fig 2) shows Friday ended as a bullish engulfing candle (albeit at a swing high rather than the preferred swing low) – possibly hinting at diminishing supply around 83.40.
- This comes as the EURUSD pair, with its high weighting in the USDX, has experienced interim support around the 1.3000 round number area.
- Any sustained break under the euro/dollar 1.3000 handle could potentially see the USDX push through this 83.40 area price pivot. The USDJPY 100.00 area is likewise a key area heading into the new week with the USDJPY pair moving close to 50 pips away from this key area on Friday.
- We note that the 84.20 level marks the 61.8% Fibonacci retrace of the last major swing lower. This could become a focus if the recent upside trend continues – as is the 84.55 area prior swing high.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0800 on USD weakness
EUR/USD trades in positive territory above 1.0750 in the second half of the day on Monday. The US Dollar struggles to find demand as investors reassess the Fed's rate outlook following Friday's disappointing labor market data.
GBP/USD closes in on 1.2600 as risk mood improves
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold gathers bullish momentum, climbs above $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Three fundamentals for the week: Two central bank decisions and one sensitive US Premium
The Reserve Bank of Australia is set to strike a more hawkish tone, reversing its dovish shift. Policymakers at the Bank of England may open the door to a rate cut in June.