USD Index Breaks Out Of 5-Week Range

Published 06/30/2014, 03:35 AM

With the downside break of 80.22 it further suggests we have seen a top at 81.050 and for losses to resume.

DXY Weekly Chart

After nearly 5-weeks of range trading the US Dollar Index finally broke below 80.22 support to further suggest 81.05 is a key swing high for the Greenback. Closing at the low of the week adds further bearish sentiment to the analysis. In the event we break above 80.22 then the 50 and 200-week eMA's may provide resistance for bearish swing trades. Alternatively seek bullish setups across other Major pairs.

DXY Daily Chart

You can see there are several technical levels around 80, which is why I favour a retracement before a resumption of the bearish move. If 80.22 caps as resistance then this could provide a short opportunity with a relatively tight reward/risk ratio. However we can still allow for a deeper pullback before losses commence, but it would also suggest that subsequent price declines would be less direct.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.