DXY approaching key resistance line
After reversing higher in mid-July, DXY has almost been on a continuous run to the upside. That said, from the broader perspective, the index is still trading below a medium-term tentative downside resistance line drawn from the high of May 31st. The price is already approaching that line and the question is will it end up breaking that trendline?
If the bulls are able to break that downside line, this may attract more buyers into the game, as such a move could break the downtrend. This could clear the path towards the 200-day EMA, or even to the 103.25 zone.
Alternatively, if the downside line holds, this may result in DXY moving back down. That said, we would get a bit more comfortable with lower areas if the price falls below a short-term tentative upside support line taken from the low of July 18th. This way the index may invite more bears into the field and could travel all the way back to the 101.11 obstacle, or even the 100.50 area.
DariusAnucauskas
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Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
If the bulls are able to break that downside line, this may attract more buyers into the game, as such a move could break the downtrend. This could clear the path towards the 200-day EMA, or even to the 103.25 zone.
Alternatively, if the downside line holds, this may result in DXY moving back down. That said, we would get a bit more comfortable with lower areas if the price falls below a short-term tentative upside support line taken from the low of July 18th. This way the index may invite more bears into the field and could travel all the way back to the 101.11 obstacle, or even the 100.50 area.
DariusAnucauskas
Disclaimer:
easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
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