The US Dollar Index is up greater than 2.4% from the June low with DXY now approaching multi-year inflection slope forward of the FOMC rate of interest choice and US Non-Farm Payroll this week. These are the up to date targets and invalidation ranges that matter on the DXY weekly worth chart heading into the shut of the month. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this US Greenback commerce setup and extra.

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US Greenback Value Chart – DXY Weekly

US Dollar Price Chart - DXY Weekly - US Dollar Index Technical Outlook

Notes: In my final US Dollar Weekly Price Outlook we famous that the index was testing a serious resistance-confluence at 97.87 the place the 61.8% retracement oft eh 2017 decline converges on fundamental trendline resistance. Value closed simply pips above this area final week with the breakout in danger whereas under this threshold heading into this week’s FOMC rate of interest choice.

Instant weekly resistance now stands at 98.37/42 – a area outlined by the 100% extension at of the June advance and the Might excessive. Word {that a} parallel of the 2011 trendline line (which has been an inflection slope for greater than six years now) rests simply larger and finally a weekly shut above is required to maintain the broader long-bias viable focusing on 99.19 and the April 2017 uncovered shut at 99.98. Regulate the pending RSI resistance set off for steering. Preliminary assist now again at 97.87 with a break under 97.50 wanted to recommend a bigger correction is underway.

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Backside line: The US Greenback Index must clear this crucial resistance slope on a weekly shut foundation to maintain the long-bias viable and validate a breakout of the target yearly opening-range excessive. From a buying and selling standpoint, look to scale back long-exposure / increase protecting stops on a stretch in direction of 98.37/42 – anticipate an even bigger response there IF reached. Consider we’re heading into the shut of the month with main occasion danger on faucet (BoE, FOMC, NFP) – keep nimble and tread flippantly into the August open.

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Earlier Weekly Technical Charts

— Written by Michael Boutros, Technical Forex Strategist with DailyFX

Comply with Michael on Twitter @MBForex

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