DXY: Technical Analysis of the US Dollar: USD Fed Rally Alters, DXY November Marks

Nov 7

VOT Research Report

Analytics and Recommendations

Technical Price Projection for the US Dollar: DXY Weekly Trade Levels

Weekly Chart: Technical Trade Level Update for the US Dollar

USD Post-NFPs Fed rally retreats, but corrective risk remains

DXY resistance 112.17, 114.78-115.29, 116.20s, support 109.64, 108.09/74, 104.88-105

With the DXY up over 0.5% as of the weekly close, the US Dollar Index ended a two-week losing skid. Despite a good US non-farm payroll (NFP) announcement on Friday, the dollar gave up all of its post-FOMC gains, and the reversal raises the possibility of another test of the lows in the coming days. On the weekly price charts for the US Dollar Index, these are the current technical goals and invalidation levels that are significant.

The prognosis for the US dollar overall is still positive, but the current surge after overcoming uptrend resistance may be fragile here. At “the yearly high-week closure at 112.17 supported by the September low-week inversion at 109.64,” the emphasis was on support goals. The index hit a low the subsequent week at 109.53 after recovering, but this week’s rise was unable to push the index back up beyond 112.17.

Weekly support is at 109.64, and intermediate bull repudiation is at the 2001 bottom and the 23.6% retracement of the 2021 rise, respectively. It’s important to note that weakening below this area would indicate a broader reversal is beginning and that last month’s peak was more meaningful. With further goals set at the 2001 high-week close at 119.91 and that same year’s flip high at 121.02, key resistance remains at the yearly high and 88.6% Fibonacci retracement of the 2001 drop at 114.78-115.29, backed closely by channel resistance.

Conclusion:

Despite the fact that the overall US Dollar forecast is still favoring the upside, the index is still susceptible to a further fall when trading below 112.17. For the annual upswing to stay feasible from a trading perspective, losses should be kept under 108.09, and a violation of / close over 115.30 is required to spark the subsequent price increase. Next week’s important inflation figures will require you to be quick-thinking because they could cause some volatility in this area. Once we have more clarity on the near-term DXY technical trade levels, We will update the US Dollar Short-Term Price Outlook and post it.

Weekly Moving Averages (DXY)

DXY Candle Pattern

Candle Time3 Candles

Indication Bullish reversal

Reliability Low

Description In a downtrend, the price opens lower, trades higher, but closes close to its open, giving the appearance of an invert lollipop.

On the following candlestick, it needs to be confirmed as bullish.