DXY Poised to Hit Yearly Low or Worse

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USD Technical Outlook

  • US Greenback Index (DXY) steadily trending decrease in direction of yearly low
  • Feb low up first at 89.68, then 89.20 to comply with

US Greenback Technical Evaluation: DXY Poised to Hit Yearly Lows or Worse

The US Greenback Index (DXY) continues to commerce heavy, failing virtually instantly to carry any sizable short-term pop it could have. Final week’s someday rally pushed it by way of the April low and simply above the Jan-present trend-line, however introduced into play trend-line resistance from the March excessive.

The flip down has a contemporary low in sight beneath final week’s trough at 89.98. A breakdown under final week’s low will rapidly have the February low at 89.68 up subsequent as assist, adopted by the yearly low at 89.20.

The Feb low might assist induce one other bounce, however the anticipation is for it to be short-lived in-line with latest sequences. It might supply would-be shorts one other alternative to enter into short-term positions because the pattern continues in direction of the yearly lows or worse.

The yearly low at 89.20 could be one other story so far as significant assist goes. It might be sufficient to induce a large response, even when that too is just short-lived. We in fact want to attend for worth to fall to that time, first, however one thing to bear in mind.

Flipping the script from bearish to bullish would require some work on the a part of the greenback. For starters, a rally might want to final greater than a day or two. The trend-line from April will first must be damaged, adopted by climbing above a robust degree of resistance proper across the 91.40 degree.

For shorts, the trail of least resistance seems set to proceed of their favor. For would-be longs, the image holds little enchantment within the absence of assist in a gradual downtrend.

US Greenback Index (DXY) Each day Chart (trending in direction of Feb & yearly lows)

DXY Chart by TradingView

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—Written by Paul Robinson, Market Analyst

You’ll be able to comply with Paul on Twitter at @PaulRobinsonFX

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