The Technical Outlook For The US Dollar (.DXY)

$.DXY

The daily of the US Dollar (.DXY) Index shows the US currency has been making a series of lower lows and lower highs.

The index is confined inside a Bearish channel and holding below both the 21-Day EMA, and the 50-Day SMA, both are pointing South. The latter has recently also moved below the flattening 200-Day MA to create a Death Cross.

The medium term technical outlook looks Bearish for .DXY, and will remain this way until and unless it breaks out of the Bearish channel.

In the short-term outlook

The US Dollar Index is looking a bit oversold, at least judging by the RSI indicator nearing 30, though this does not mean the selling is over or will be when it hits this mark.

The RSI points out that the momentum has been Bearish for the Buck and can remain oversold for long frames. The recent tests of 30 on RSI have seen a corresponding bounce in the US currency.

With the US Dollar Index holding below Key short-term resistances such as those shown on the chart at 94.35, 94.65 and 95.10, it appears more likely that we will see a continuation of the downward trend this week than a rebound.

There are a couple of potential support marks to watch on the Southside: 93.80 and then 92.60/65.

The latter was the low from August 2015, which corresponds with the support trend of the Bearish channel. It is a mark to watch if it gets there.

Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a tech trader.

Stay tuned…

HeffX-LTN

Paul Ebeling