The overall dynamics of DXY continue to remain bearish. For sellers to resume short positions on the DXY index (CFD #USDX in the MT4 terminal), a breakdown of the 101.51 support level (200 EMA on the 1-hour chart) is needed. In this case, DXY will continue to decline within the downward channel on the daily chart. Its lower border, currently passing near the 98.00 mark, will become the target for the DXY decline. Although it could still be stopped in the area of key support levels at 100.40 (144 EMA on the weekly chart), 100.00, and 99.25 (200 EMA on the weekly chart), above which DXY remains in the long-term bullish market zone.
However, to break the global bullish trend of DXY, the price needs to break into the area below support levels at 94.40 and 93.50 (144 EMA and 200 EMA on the monthly chart).
In an alternative scenario, a signal for opening long positions will be the breakout of the important resistance level at 101.98 (200 EMA on the 4-hour chart). In this case, a breakout of the resistance level at 102.27 (50 EMA on the daily chart) will be a confirming signal. In case of success, DXY will rise to the 103.00 resistance level.
But only a breakout of the resistance level at 103.80 (200 EMA, 144 EMA on the daily chart) will bring DXY into the area of medium-term and long-term bullish markets. Overall, the downward dynamics prevail, so preference should be given to short positions.
Support levels: 101.51, 101.00, 100.80, 100.40, 100.00, 99.25, 99.00
The overall dynamics of DXY continue to remain bearish. For sellers to resume short positions on the DXY index (CFD #USDX in the MT4 terminal), a breakdown of the 101.51 support level (200 EMA on the 1-hour chart) is needed. In this case, DXY will continue to decline within the downward channel on the daily chart. Its lower border, currently passing near the 98.00 mark, will become the target for the DXY decline. Although it could still be stopped in the area of key support levels at 100.40 (144 EMA on the weekly chart), 100.00, and 99.25 (200 EMA on the weekly chart), above which DXY remains in the long-term bullish market zone.
However, to break the global bullish trend of DXY, the price needs to break into the area below support levels at 94.40 and 93.50 (144 EMA and 200 EMA on the monthly chart).
In an alternative scenario, a signal for opening long positions will be the breakout of the important resistance level at 101.98 (200 EMA on the 4-hour chart). In this case, a breakout of the resistance level at 102.27 (50 EMA on the daily chart) will be a confirming signal. In case of success, DXY will rise to the 103.00 resistance level.
But only a breakout of the resistance level at 103.80 (200 EMA, 144 EMA on the daily chart) will bring DXY into the area of medium-term and long-term bullish markets. Overall, the downward dynamics prevail, so preference should be given to short positions.
Support levels: 101.51, 101.00, 100.80, 100.40, 100.00, 99.25, 99.00
Resistance levels: 101.98, 102.00, 102.27, 103.00, 103.45, 103.80, 104.00, 105.00, 105.85
The material has been provided by InstaForex Company – www.instaforex.com
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