Dollar Index Technical Update – USDX – DXY – USD Technical Forecast
- The dollar index has seen four consecutive up days after 78.70 area support held at the start of the week. Price is now retesting the previously broken ascending trend line.
- This area is just below a touch of the descending trend line which is currently around 30 USDX pips to the upside.
- Average daily range over 60 days is 49 pips with Friday giving 42 and 85% of ADR.
- Average weekly range over 26 weeks is 135 pips with this week seeing 92 and 68% of AWR. The weekly percentage gain was 0.90%.
- The EURUSD triangle pattern (EURUSD is heavily weighted on the USDX) should be monitored as price action around the triangle apex could give a hint towards near term dollar strength or weakness.
- 80.00 is still seen as a potential resistance area after capping the dollar index on numerous recent occasions; most recently on the 16/4/2012.
- If no major fundamental data comes to light there is potential for USDX ranging between 78.70 and 80.00 over the coming sessions. A breakout (daily close out of the aforementioned range) may give a medium term dollar index directional bias.
Dollar Index Daily Chart