USD Technical Outlook
- US Dollar Index (DXY) pullback held onto old resistance as new support
- The sharp push off support is bullish, may get sideways price action near-term
US Dollar Technical Analysis: Outlook Neutral to Bullish
Last week the US Dollar Index (DXY) declined into a an area of old resistance that was viewed as becoming a potential source of support. To recap from last week’s USD piece, the area around 97.80 made up a pair of minor horizontal lines from 2020 and more importantly a top-side slope created over the last couple of months.
Seeing a breakout and then emphatic test and pass of old resistance as support creates a strong floor for DXY. The broader tone and trend are higher for the dollar, but in the near-term we may see some sideways price action.
As long as the above mentioned support holds on a daily closing basis, then the trading bias is bullish, neutral at worst. It will require a strong drop through that support level to flip…