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. 

Dollar Index Spot TECHNICAL LEVELS TO WATCH

Overview
Today last price 94.12
Today Daily Change 0.76
Today Daily Change % 0.81
Today daily open 93.36
 
Trends
Daily SMA20 93.95
Daily SMA50 93.35
Daily SMA100 92.84
Daily SMA200 91.94
 
Levels
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

 

 

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