U.S. Dollar Sell-off Targets Initial Support

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DXY Daily Chart

U.S. Dollar Sell-off Targets Initial Support

U.S. Dollar Sell-off Targets Initial SupportDXY Price Chart - Daily Timeframe

Technical Outlook: We’ve been tracking a long-term slope line dating behind to 2011 and in final week’s Technical Outlook, we highlighted a risk for a pullback while next this pivotal threshold. The successive decrease is now contrast initial support during a 94-handle where simple channel support converges on a broader 23.6% retracement of a yearly range. A mangle reduce still has to contend with a 100-day relocating normal / median-line (blue) during ~93.60s – a tighten next this segment is indispensable to advise that a some-more poignant high is in place.

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DXY 240min Chart

DXY Price Chart - 240min Timeframe

Notes:A closer demeanour during cost movement serve highlights this near-term support section around a figure. Resistance stands with a Nov open / weekly opening-range high during 94.63 with a crack above a forward median-line (red) indispensable to change a concentration behind to a long-side in a index.

Bottom line: The index is contrast initial support and while we could see some evident service here, a concentration stays reduce while within this near-term forward pitchfork arrangement (blue). Keep in mind that we have a recover of a U.S. Consumer Price Index(CPI) tomorrow with a eventuality expected to hint increasing sensitivity in a USD crosses.

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

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