DXY TECHNICAL ANALYSIS: The Dollar Takes A Dive


  • The dollar index has fallen 0.14% after showing strength earlier in the session.
  • German ZEW data and UK earnings data improve.
  • Trump offers nothing new at Davos.



The Dollar Index 1-Hour Chart

The DXY has fallen from recent highs of around 97.66 seen earlier in the session. 

From the hourly chart below you can see a lower high lower low wave has now been created. 

There are a few technical support levels in sight. The next target for the bears could be around 96.88. This level was used throughout the month. Beyond that, there is a trendline on the chart that is marked in blue and the 96.69 level which was the price peak earlier in the month. The 97 area could also act as a sticking point as it is the mean value area of the consolidation zone between 96.88 and 97.18 and was pretty sticky in the past.

On the daily chart, the price continues to make higher highs and higher low waves. The major support on this timeframe is around 97.09. The RSI on the daily chart is still above the 50 mid-line but has just turned south. Bear this in mind before you start taking short positions.

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