DXY: The Future Of US Dollar Index, Bears Set To Take Control
Following its peak on December 14th of 97.71 the US Dollar Index has made a steady decline hitting lows of 95.64, this level has not been seen since mid-late October. The 4-Hourly timeframe is beginning to print confirmed lower lows and lower highs solidifying that there is at least a short to medium term Bearish trend in play. At the time of writing this, the price is currently stalling at the 96.00 psychological support floor indicating we may be looking for a third touch of the Bearish trendline as seen on the chart. Should we see a strong break below 96.00, 95.50 and 95.00 are the next two support levels to look for.
With regards to Fundamental factors this week we can expect to see some volatility in the Dollar pairs after the Christmas and New Year market slumber we see annually. The US has multiple high impact data releases and events over the course of the week including Non-Farm Payroll and The Federal Reserve Chair Powell is speaking on Friday. These events usually produce high levels of volatility in the market so it will be interesting to see how the DXY is performing come Friday evening.
I predict that we will likely see the Index consolidate between 95.00 and 96.00 when it does eventually fall into that range, a significant drop below 95.00 will see a harsh decline for the USD.
Written by Sam Moore
Instagram - @Moore_Fx