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Dollar Index Price Analysis: As the dollar capitulation continues here are some key support levels

  • The DXY has once again had a negative session trading 0.27% lower on Thursday.
  • This could be the 6th bearish session in a row for the dollar basket.

Dollar index weekly chart

It's hard to analyse the dollar index on anything below the weekly chart as it continues falling into the abyss. That said on the weekly chart there are some interesting zones that need to be monitored. 

First of all the 92.75 level looks the strongest and it is closest to the current price. There have been four meaningful touches of this level but it was first used as a support at the end of August 2015. It then once again proved to be a good consolidation low once again in May the following year. Beyond that, it was broken but when the price broke back above the area there was a small bounce at the zone and potentially this could happen again soon. 

There is a tentative line which is marked in purple and it only really had one serious bounce in September 2017. But the main consolidation low is marked in red and this is holding at 88.25. Although this has only been hit once on the chart in 2009 and 2010 it was a key level of resistance. 

Overall, this is a very strong downtrend and there would not be too many long opportunities. The fact the downward pressure stalled overnight and in the EU session could mean traders and investors might be done with the selling in the short or medium term. This means the levels mentioned above become more significant. 

Key levels for the dollar index

Additional index

Dollar Index Spot

Overview
Today last price93.01
Today Daily Change-0.26
Today Daily Change %-0.28
Today daily open93.27
 
Trends
Daily SMA2095.75
Daily SMA5096.84
Daily SMA10098.38
Daily SMA20098.08
 
Levels
Previous Daily High93.8
Previous Daily Low93.18
Previous Weekly High96.18
Previous Weekly Low94.32
Previous Monthly High98.24
Previous Monthly Low95.72
Daily Fibonacci 38.2%93.41
Daily Fibonacci 61.8%93.56
Daily Pivot Point S193.03
Daily Pivot Point S292.79
Daily Pivot Point S392.41
Daily Pivot Point R193.66
Daily Pivot Point R294.04
Daily Pivot Point R394.28

Author

Rajan Dhall, MSTA

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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