DXY Price Analysis: Strong support at 93.50 spurred US Dollar demand, finishing the week at 94.10

  • The US Dollar Index rose almost 1% during the day, printing a fresh weekly high at 94.30.
  • The greenback strengthened across the board amid falling US T-bond yields.
  • DXY: A break above 94.17 opens the door for a renewed test of 2021 high at 94.56.

The US Dollar Index, which tracks the greenback’s performance against a basket of six peers, rallies 0.86% during the New York session, is at 94.10, short of the 94.30 fresh weekly high at the time of writing. In the meantime, US T-bond yields are falling, with the 10-year benchmark note down two basis points, sitting at 1.545%.

The market sentiment is mixed, depicted by European stock indices, splitting between gainers and losers. Across the pond, the story is positive for US equities. On Thursday’s late New York session, Us equity futures pointed lower, headed by the Nasdaq Composite and the S&P 500, which were falling sharply due to missed earnings by Apple and Amazon. But as of press time, the indices rise between 0.05% and 0.19%, ultimately boosting the greenback prospects

DXY Price Forecast: Technical outlook

Daily chart

On Thursday, the index broke below the 93.50 substantial support area, unsuccessfully broken three times before. But on Wednesday, it finally yielded way for USD bears, printing a daily low at 93.27. At that level, the confluence of an upslope support trendline that travels from May 26 low towards the September 3 low and the 50-day moving average at 93.36 capped the downward move.

However, the story changed on Friday, as the index rose to print a fresh weekly high at 94.30, to settle at 94.10 finally. Friday’s price action printed a huge candlestick that completely covered Thursday’s one, forming a bullish engulfing candle with a solid upward conviction of USD bulls.

Furthermore, the daily moving averages (DMA’s) remain below the price, and a rising upslope trendline acted as solid support, adding two bullish signals to the US Dollar Index overall trend bias. The Relative Strength Index (RSI) at 56 is aiming higher, sums to the abovementioned, so the confluence of three bullish signals, confirm the bullish bias.

However, to resume the uptrend, USD bulls will need a daily close above the October 18 high at 94.17. In that outcome, the 2021 year high at 94.56 would be the only resistance level left before reaching fresh yearly highs.

On the flip side, failure at 94.17 might open the door for a newed re-test of the crucial 93.50 support area. 


Today last price 94.12
Today Daily Change 0.76
Today Daily Change % 0.81
Today daily open 93.36
Daily SMA20 93.95
Daily SMA50 93.35
Daily SMA100 92.84
Daily SMA200 91.94
Previous Daily High 93.97
Previous Daily Low 93.28
Previous Weekly High 94.17
Previous Weekly Low 93.5
Previous Monthly High 94.51
Previous Monthly Low 91.95
Daily Fibonacci 38.2% 93.54
Daily Fibonacci 61.8% 93.7
Daily Pivot Point S1 93.1
Daily Pivot Point S2 92.85
Daily Pivot Point S3 92.41
Daily Pivot Point R1 93.79
Daily Pivot Point R2 94.23
Daily Pivot Point R3 94.48



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1150 ahead of German GDP, US inflation

EUR/USD is trading around 1.1150, attempting a bounce from 119-months lows of 1.1132. The US dollar eases from multi-month highs amid a return of risk appetite and firmer Treasury yields. US advance Q4 GDP beat estimates with 6.9% YoY. German Prelim GDP and US PCE inflation awaited.


GBP/USD regains 1.3400 on Brexit optimism, US PCE eyed

GBP/USD is extending its rebound from five-week lows above 1.3400 amid an upbeat mood. UK Foreign Secretary Liz Truss eyes significant progress in Brexit talks by February. Report over UK PM Johnson’s future leadership deferred. US PCE inflation in focus. 


Gold rebounds ahead of US PCE inflation, not out of the woods yet Premium

Gold price attempts a bounce as the US dollar retreats ahead of US PCE inflation. After Wednesday’s $40 sell-off, gold price tumbled another $23 on Thursday, as bulls finally surrendered the $1,800 area to hit the lowest level in two weeks at $1,792. 

Gold News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

Read more

US PCE Inflation Preview: Dollar rally has more legs to run Premium

Annual Core PCE inflation is forecast to rise to 4.8% in December from 4.7%. US Dollar Index surged to its highest level in more than a year on Fed's hawkish outlook.  Dollar is likely to continue to outperform its rivals in the near term.

Read more