- USD breaks to uninformed yearly highs forward of FOMC- Look for a greeting during 94.20/27
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The USD has rallied some-more than 6% off a yearly lows with a allege now contrast an area of feeder insurgency that could extent serve gains near-term. A near-term structure has been in play via a April-May allege and keeps a concentration aloft . . . for now.
USD Daily Price Chart (DXY)
Technical Outlook: In my latest Weekly Technical Perspective on a US Dollar, we remarkable that a DXY was, “testing confluence insurgency this week during 93.89-94.20 where a 2016 low-week annulment tighten and a 38.2% retracement of a 2017 decrease intersect on a median-line.” The index is trade in this segment currently and a daily tighten above is indispensable to keep a evident USD uptrend viable.
Daily support rests during 92.52 with bullish cancellation set to a yearly open during 92.28. A topside crack of this threshold targets successive insurgency objectives during 95.15 and a 50% retracement during 96.04.
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USD 240min Price Chart (DXY)
Notes: A closer demeanour during USD cost movement sees a DXY trade within a proportions of a well-defined descending channel arrangement with a reduce together highlighting near-term support during 93.42. Note that a momentum profile will be imprinting bearish dissimilarity into these highs IF this candle tighten during stream levels. That said, we’ll be looking for a greeting on a widen into 94.20/27 for probable exhaustion.
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Bottom line: While a broader opinion stays weighted to a topside in a USD, a index is contrast Big insurgency here only forward of a recover of a FOMC mins after today. IF a Dollar is going to get a pullback, this would be a good spot- a mangle next 93.42 targets a shock towards 92.52 92.28– both areas of seductiveness for exhaustion / liberation in price IF reached.
For a finish relapse of Michael’s trade strategy, examination his Foundations of Technical Analysis series on Building a Trading Strategy
Relevant Data Releases
Economic Calendar – latest economic developments and upcoming event risk
Other Setups in Play
- EUR/USD Technical Outlook: Are a Euro Tides Shifting?
- The US Dollar Exhaustion Trade- Levels to Know
- Weekly Technical Perspective on AUD/USD
- AUD/USD Price Analysis: Pending Consolidation Break to Fuel Next Leg
– Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or hit him during firstname.lastname@example.org