US Dollar Price Outlook: USD Threatens Weekly Doji into Monthly Close
- US Dollar threatens weekly doji off fresh monthly high into close of November- rally at risk sub-98.84
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The US Dollar is fractionally lower ahead of the shortened holiday session on Friday with DXY down just 0.2% this week. The index turned just head of a critical resistance zone late in the week with the broader US Dollar rally at risk heading into the start of December trade. These are the updated targets and invalidation levels that matter on the DXY weekly price chart. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Loonie price setup and more.
US Dollar Price Chart – DXY WeeklyChart Prepared by Michael Boutros,
Technical Strategist; NZD/USD on Tradingview
Notes: In my last USD Price Outlook we noted that the, “immediate focus is on the US Dollar recovery with the near-term rally vulnerable ahead of 98.13/15.” The index briefly registered a high at 98.54 before turning lower on Friday with price threatening a weekly reversal / Doji heading into the close. The turn comes just ahead of a critical resistance barrier at 98.70/84- a region defined by the yearly high-week reversal close and the 61.58% retracement of the late- September decline. The focus remains on this key zone with the US Dollar rebound vulnerable while below.
A topside breach/ close would be needed to mark resumption targeting 99.43 and the 2017 uncovered close at 99.98. Initial weekly support at 97.87 with a break below the October lows at 97.11 exposing critical support at the 61.8% retracement of the yearly range / slope support at 96.80– expect a larger reaction there IF reached.
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Bottom line: The US Dollar turned just ahead of BIG resistance this week. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops- be on the lookout for possible topside exhaustion up here. We’ll be looking for a reaction into the start of the month for guidance with the October advance at risk while below 98.84 for now. Review my latest US Dollar Price Outlook for closer look at the near-term DXY technical trade levels.
Previous Weekly Technical Charts
- Japanese Yen (USD/JPY)
- Sterling (GBP/USD)
- Crude Oil (WTI)
- Gold (XAU/USD)
- Canadian Dollar (USD/CAD)
- Australian Dollar (AUD/USD)
- New Zealand Dollar (NZD/USD)
--- Written by Michael Boutros, Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex