Dollar Index Technical Analysis – WC July 1st – USDX Update
by Nick Simpson, Forex-FX-4X
- The dollar index has spent the later part of this past week trading around the 83.40 area price pivot zone, after finding an element of resistance at this USDX technical area of interest.
- When referencing the USDX weekly chart we note that price has closed near the weekly range high.
- The daily chart (fig 2) shows Friday ended as a bullish engulfing candle (albeit at a swing high rather than the preferred swing low) – possibly hinting at diminishing supply around 83.40.
- This comes as the EURUSD pair, with its high weighting in the dollar index, has experienced interim support around the 1.3000 round number area.
- Any sustained break under the euro/dollar 1.3000 handle could potentially see the USDX push through this 83.40 area price pivot. The USDJPY 100.00 area is likewise a key area heading into the new week with the USDJPY pair moving close to 50 pips away from this key area on Friday.
- We note that the 84.20 level marks the 61.8% Fibonacci retrace of the last major swing lower. This could become a focus if the recent upside trend continues – as is the 84.55 area prior swing high.
Click on either chart for larger image.
USDX – Dollar Index – W1 – Fig 1
USDX – Dollar Index – D1 – Fig 2
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