US Dollar Outlook: DXY Plunges into May

US Dollar Outlook: DXY Plunges into May

US Greenback Technical Worth Outlook: DXY Weekly Commerce Ranges

  • US Dollartechnical commerce degree replace – Weekly Chart
  • USD breakdown plummets into yearly development support- danger for additional Could losses
  • DXY weekly help at 89.93, 89.07 – resistance / bearish invalidation 92.28

The US Dollar Index plummeted greater than 1% this week with DXY breaking to multi-month lows on the heels of a weaker-than-expected April Non-Farm Payroll report. The decline marked an outside-weekly reversal candle on Friday with the index now down greater than 3.4% off the yearly excessive. Whereas the breakdown does danger additional Greenback losses, the speedy focus is on resumption beneath yearly development help heading into subsequent week with the outlook weighted to the draw back whereas beneath this week’s excessive. These are the up to date technical targets and invalidation ranges that matter on the US Greenback Index worth chart heading into subsequent week. Review my latest Strategy Webinar for an in-depth breakdown of this DXY technical setup and extra.

US Greenback Index Worth Chart – DXY Weekly

Dollar Index Chart

Chart Ready by Michael Boutros, Technical Strategist; US Dollar Index on Tradingview

Notes: In my final US Dollar Weekly Price Outlook we famous that the DXY was, “in correction throughout the yearly uptrend with the decline now eyeing preliminary support goals simply decrease.” The zone in focus was 90.82–91.01 – a area outlined by the 61.8% retracement of the yearly vary and the 2017 swing low. The index carved a weekly opening-range simply above this threshold earlier than breaking sharply decrease post-NFP on Friday. The decline marked an outside-weekly reversal into yearly trendline help with an in depth beneath wanted to maintain the speedy short-bias viable.

A break decrease retains the give attention to the target 2021 yearly open at 89.83 backed by the 2018 low-week / yearly low at 89.07/20– look for a bigger response there IF reached. Preliminary weekly resistance stands with the Could open at 91.30 with broader bearish invalidation now lowered to the 2018 yearly open at 92.28.

For a whole breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Analysis series on Building a Trading Strategy

Backside line: The US Greenback has damaged to multi-month lows with the index threatening a break of yearly slope help. From at buying and selling standpoint, look to scale back short-exposure / decrease protecting stops on a take a look at of the yearly open – rallies must be capped by this week’s excessive IF worth is certainly heading decrease. I’ll publish an up to date US Dollar Price Outlook as soon as we get additional readability on the near-term technical DXY buying and selling ranges.

Key US Knowledge Releases

US Dollar Outlook: DXY Plunges into May - USD in Free-Fall Post-NFPUS Dollar Outlook: DXY Plunges into May - USD in Free-Fall Post-NFP

Economic Calendarnewest financial developments and upcoming occasion danger.

Earlier Weekly Technical Charts

— Written by Michael Boutros, Technical Strategist with DailyFX

Comply with Michael on Twitter @MBForex

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