Home Reviews US Greenback Technical Forecast: Can Dollar Positive factors Proceed?

US Greenback Technical Forecast: Can Dollar Positive factors Proceed?

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US DOLLAR PRICE WEEKLY TECHNICAL OUTLOOK:

The US Greenback Index surged to its highest degree since Might 2017 as dollar energy dominated foreign money value motion final weekThe US Greenback appears to be like set to proceed its advance and the technical backdrop on spot USDCHF is of specific curiosityTake a look at our free Foreign exchange for Learners instructional trading information

USD value motion recorded a gentle ascent over the past 5 trading days with the DXY US Greenback Index leaping a wholesome 1.59%. Final week’s surge within the US Greenback, though spectacular, was largely a rebound from sizable draw back recorded the previous week as markets gyrate in response to the newest US-China commerce conflict developments.

US DOLLAR – DXY INDEX PRICE CHART: 15-MINUTE TIME FRAME (AUGUST 23, 2019 TO AUGUST 30, 2019)

Chart created by @RichDvorakFX with TradingView

The US Greenback’s steep ascent final week was in a position to eclipse the August 1 intraday excessive earlier than tapping out at 99.02. The truth is, Friday’s intraday swing to the upside was the best for the DXY US Greenback Index since Might 12, 2017. Turning to the chart beneath, the DXY Index is now roughly 2-standard deviations away from its 20-day easy shifting common and means that the US Greenback may very well be overextended.

US DOLLAR – DXY INDEX PRICE CHART: DAILY TIME FRAME (MARCH 28, 2019 TO AUGUST 31, 2019)

DXY Index US Dollar Price Chart Technical Analysis

Chart created by @RichDvorakFX with TradingView

But, the Three-standard deviation Bollinger band implies that there’s potential for additional upside as costs stay comfortably beneath high channel line resistance. The relative energy index (RSI) sitting generously above 50 however modestly beneath 70, or “overbought territory,” can also be an encouraging signal that upward momentum would possibly proceed. If the dollar slips from its recent excessive, nevertheless, the DXY Index might discover technical assist across the 98.25-98.50 value zone. This space of confluence additionally marks the 23.6% Fibonacci retracement degree of its June low.

US DOLLAR – DXY INDEX PRICE CHART: WEEKLY TIME FRAME (AUGUST 29, 2016 TO AUGUST 31, 2019)

DXY US Dollar Index Price Chart Technical Analysis

Chart created by @RichDvorakFX with TradingView

Moreover, the US Greenback Index could discover technical assist on the 98.00 value degree as this space of confluence can also be highlighted by the 61.eight% Fibonacci retracement of its January 2017 swing excessive. On the weekly chart, we see can see the current topside breakout within the US Greenback extra clearly because the DXY Index surges above this main technical space. That mentioned, the US Greenback is more likely to proceed marching greater throughout the confinements of its rising wedge as value motion coils additional between upward-sloping trendlines prolonged from the sequence of upper highs and better lows since mid-2017.

Trying outdoors the DXY Index to the foremost US Greenback foreign money pairs, the uneven sideways value motion being etched out in spot AUDUSD roughly between Zero.6700-Zero.6800 handles is value mentioning because it might probably supply engaging vary trading alternatives. Elsewhere, spot USDCHF seems to have the cleanest chart setup for attainable US Greenback uptrend continuation.

USDCHF PRICE CHART: DAILY TIME FRAME (APRIL 25, 2019 TO AUGUST 31, 2019)

USDCHF Price Chart Technical Analysis Forecast

Spot USDCHF breaking out above its bearish trendline prolonged from the Might 7 and July 31 swing highs was a wholesome growth for bulls final week and underscores the US Greenback’s newest episode of energy. Additionally, spot USDCHF surmounting technical resistance posed by the 38.2% Fibonacci retracement of the foreign money pair’s year-to-date excessive across the Zero.9880 degree might present a constructive tailwind and hold spot costs afloat going ahead.

Moreover, the MACD oscillator suggests growing bullish momentum and the rising RSI stays above 50 however beneath 70 – each of that are constructive for uptrend continuation. As such, a possible upside goal may very well be set barely beneath the Zero.9950 value degree as spot USDCHF could run into technical resistance right here owing to the mid-point retracement of its trading vary in addition to the 200-day easy shifting common. Alternatively, if Friday’s bounce greater in USDCHF chalks as much as be a “fake-out breakout,” spot costs could edge again decrease towards the Zero.9800 deal with the place confluent assist is obtainable by the 23.6% Fib.

— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com

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