U.S. Dollar Index Outlook for April 25, 2023
April 25, 2023 12:22 pmVideo
Latest News
- The market rushed the Fed and was sorely mistaken April 11, 2024
- The June issue can be considered a closed case April 10, 2024
- Dollar spreads its wings April 10, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 10-15, 2024: sell below $69,000 (3/8 Murray – bullish wedge) April 10, 2024
- Is there a possibility of no Fed rate cuts this year? – Special Report April 10, 2024
- Technical Analysis – Citigroup stock pulls back ahead of earnings April 10, 2024
- Trading Signals for Ethereum (ETH/USD) for April 10-15, 2024: sell below $2,364 (3/8 Murray – symmetrical triangle) April 10, 2024
- EUR/USD and GBP/USD: Technical analysis on April 10 April 10, 2024
- Technical Analysis – USDJPY flies to new 34-year high April 10, 2024
- Technical Analysis – AUDCAD rebounds strongly from uptrend line April 10, 2024
- Banks Q1 earnings: Weak results despite stock outperformance – Stock Markets April 10, 2024
- Forex forecast 04/10/2024: EUR/USD, NZD/USD, USD/CAD and Oil from Sebastian Seliga April 10, 2024
- Technical Analysis – EURCHF eases slightly after 1-year peak April 10, 2024
- GBP/USD on April 10. USD does not rely on traders’ support April 10, 2024
- Technical Analysis – Is CADJPY setting the stage for its next bull run? April 10, 2024
- Technical Analysis – Is CADJPY setting the ground for its next bull run? April 10, 2024
- Technical Analysis – USDJPY flirts with intervention zone April 10, 2024
- Market Comment – Dollar and equities trade higher in anticipation of US CPI release April 10, 2024
- Technical Analysis – EURUSD oscillates within a sideways range April 10, 2024
- Technical Analysis – Gold attempts to unlock new high April 10, 2024
Market participants are assessing the macroeconomic data coming from the U.S., trying to predict both the likelihood of a recession in the American economy and the actions of the Federal Reserve under current conditions.
The prospects for the dollar are deteriorating, as evidenced by the nearly uninterrupted 7-month decline of its DXY index (CFD #USDX in the MT4 terminal). Currently, it is trading in the area of short-term and medium-term markets, falling towards the key support levels of 100.35 (144 EMA on the weekly chart), 100.00, and 99.15 (200 EMA on the weekly chart).
A breakdown of the psychologically significant support level of 100.00 may trigger a further decline in the DXY, while breaking the support level of 99.15 would significantly increase the risk of breaking the dollar’s long-term bullish trend, which still remains in the global bull market area, above the support level of 93.40 (200 EMA on the monthly chart).
In an alternative scenario, the DXY will resume growth. This may happen either by bouncing off support levels 100.35, 100.00, or from current levels. However, to resume long positions, it is better to wait for the DXY to rise above the resistance levels of 102.40 (200 EMA on the 4-hour chart) and 102.70 (50 EMA on the daily chart).
The very first signal for buying may be a breakout of the short-term resistance level 101.72 (200 EMA on the 1-hour chart). But only a breakout of the 104.00 resistance level (200 EMA on the daily chart) will bring the DXY back into the medium-term bull market zone, also resuming its long-term dynamics.
For now, the downward dynamics of the DXY prevail, based on which preference should be given to short positions.
Support levels: 101.00, 100.75, 100.35, 100.00, 99.15, 99.00, 93.40
Resistance levels: 101.45, 101.72, 102.00, 102.40, 102.70, 103.00, 103.70, 104.00, 105.00, 105.85, 107.00, 107.80, 109.25
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: