- On the weekly chart, the US Dollar Index (DXY) has been trading sideways since early 2015.
- DXY has formed a head-and-shoulders pattern over the last 4 years. In 2018, DXY equally formed a nested head-and-shoulders pattern with the price now below the 200-weekly simple moving average. DXY also found resistance at a trendline resistance from January 2017. The RSI indicator is still above the 50 line while the MACD has turned slightly bearish. The Stochastic oscillator is below 50 signifying weakness.
- The 93.81 level (September 21 swing low) is the key support for bears as a break below would create a lower low and reinforce the bearish case.
- Alternatively, a break above 96.00 would be seen as a strong bullish signal and open the doors to the 2018 high and potentially way beyond (as the bulls would have invalidated the 2018 head-and-shoulder).
DXY weekly chart
Spot rate: 95.00
Relative change: -0.46%
Resistance 1: 95.24 July 13 high
Resistance 2: 95.52 August 6 high
Resistance 3: 95.65 July 19 high (key level)
Resistance 4: 96.41 August 20 high
Resistance 5: 97.00 current 2018 high
Support 1: 95.00 figure
Support 2: 94.91 July 27 high
Support 3: 93.81 September 21 swing low (key level)
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 securities. 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 Forex 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.