USDX (Dollar Index) Price Action Update
- The value of the USD in March could be highly dependent on the reaction seen over coming sessions to the 80.00 psychological round number level. This area is closely aligned with the 50% retrace area and has recently seen a strong rejection as price moved back down towards the median of the recent trading range between the 78.00 -80.00 levels.
- The latest move to the upside has seen a higher low printed at 79.06 after price took out the weekly range high yesterday, on a day that moved over 160% of the 60 day ADR, and price peaked at 80.05 before closing just under 80.00.
- The near term USD currency forecast is heavily reliant on the EURUSD which has likewise moved back to recent range extremities and is threatening to break below the lowest level seen since 17th February; this comes around 1.3094 which is around 30 pips below the closing price on Friday. A break below this area would bring 1.3000 into focus on the EURUSD which could subsequently see an influence on near term USDX price action.
- The 80.70 area price pivot is a strong area when referencing USDX historical data and could potentially provide resistance on a break above 80.00.
- The 81.77 13th February swing high was the highest U.S dollar index level seen since late 2010 and may be targeted by USDX bulls on any break above 80.70 resistance.
- Potential support is seen around 79.57, 79.06 and the 78.00 range lows.
USDX Daily Chart