- US Dollar Index holds yearly opening-range into Q3 – breakout pending
- DXY testing vital resistance confluence into July open
- Constructive above 90.82– breach / shut above 93 wanted to validate
DXYWeekly Worth Chart
Into the beginning of Q2 our DXY outlook concluded that, “Backside line: searching for topside exhaustion early within the quarter to provide strategy to bigger pullback.” We acquired it! The index opened the second quarter on a reversal candle with a one-way route taking the Greenback again into the February lows earlier than rebounding. The fast focus heading into the Q3 open is on this latest advance into confluence downtrend resistance at 92.28/46- a area outline by the 75% parallel (blue), the 2018 yearly open, and the 23.6% Fibonacci retracement of the 2020 decline.
Searching for doable inflection off this zone
A topside breach above exposes the yearly high-week shut at 93.01– search for a response there IF reached with a break / shut above wanted to maintain the long-bias viable in the direction of the 2016 low-week shut at 93.88 and the 38.2% retracement / March low at 94.47/65. Preliminary assist rests with the 61.8% retracement of the yearly vary / 2017 low at 80.82-91.01 backed by the yearly open at 89.93- in the end a break / shut beneath can be wanted to mark resumption of the broader downtrend in the direction of the 2018 low-week shut / 2021 low at 89.07/20. Backside line: pullbacks ought to be restricted to 90.82 IF worth is heading larger with a breach above the 93-handle wanted to recommend a extra important low is in place for the buck.
Written by Michael Boutros, Technical Strategist