The dollar’s outlook is deteriorating, and its DXY index (CFD #USDX in the MT4 terminal) is trading in the short-term and medium-term markets, falling to key support levels 100.35 (144 EMA on the weekly chart), 100.00, 99.15 (200 EMA on the weekly chart). A breakdown of the 100.00 support level may provoke a further decline in DXY, and a break of the 99.15 support level will significantly increase the risks of breaking the long-term bullish trend of the dollar, which still remains in the global bull market zone, above the 93.40 support level (200 EMA on the monthly chart).
In an alternative scenario and after a rebound near support levels 100.35, 100.00, the DXY will resume growth. The first signal for the resumption of long positions on it may be the breakout of the local resistance level 101.45 and the important short-term resistance level 101.82 (200 EMA on the 1-hour chart). But only a breakout of the 104.30 resistance level (200 EMA on the daily chart) will bring the DXY back into the zone of medium and long-term bull markets.
In general, the downward trend prevails, making short positions preferable.
Support levels: 101.00, 100.35, 100.00, 99.15, 99.00, 93.40
The dollar’s outlook is deteriorating, and its DXY index (CFD #USDX in the MT4 terminal) is trading in the short-term and medium-term markets, falling to key support levels 100.35 (144 EMA on the weekly chart), 100.00, 99.15 (200 EMA on the weekly chart). A breakdown of the 100.00 support level may provoke a further decline in DXY, and a break of the 99.15 support level will significantly increase the risks of breaking the long-term bullish trend of the dollar, which still remains in the global bull market zone, above the 93.40 support level (200 EMA on the monthly chart).
In an alternative scenario and after a rebound near support levels 100.35, 100.00, the DXY will resume growth. The first signal for the resumption of long positions on it may be the breakout of the local resistance level 101.45 and the important short-term resistance level 101.82 (200 EMA on the 1-hour chart). But only a breakout of the 104.30 resistance level (200 EMA on the daily chart) will bring the DXY back into the zone of medium and long-term bull markets.
In general, the downward trend prevails, making short positions preferable.
Support levels: 101.00, 100.35, 100.00, 99.15, 99.00, 93.40
Resistance levels: 101.45, 101.82, 102.00, 102.80, 103.00, 104.30, 105.00, 105.85, 107.00, 107.80, 109.25
The material has been provided by InstaForex Company – www.instaforex.com
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