DXY closes higher for the 3rd day in a row


Dollar Index (DXY) Technical Analysis Report for Jun 12, 2018 [1 min read]
Highlights
DXY closes above its opening price after recovering from early selling pressure
DXY finds buyers at key support level
DXY pushes through 20-day moving average
DXY closes higher for the 3rd day in a row
DXY pushes through previous session high
TQ Sentiment
Technical Forecast:
Overview

Moving higher for the 3rd day in a row, DXY finished Tuesday at 93.800 gaining $0.240 (0.26%) ahead of tomorrow's FOMC announcement. Today's closing price of 93.800 marks the highest close since June 5th. Trading up to $0.225 lower after the open, the contract managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 93.670, the market confirms its breakout through the prior session's high having traded $0.245 above it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily chart for DXY
Volatility

Tuesday's trading range was $0.460 (0.49%), that's below last trading month's daily average range of $0.533. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being way below average. Prices continued to consolidate within a tight trading range between 93.190 and 93.915 which it has been in now for the last trading week.

Support/Resistance

After trading as low as 93.455 during the day, Dollar Index bounced off the key support level at 93.630. The failure to close below the support might increase that levels importance as support going forward.

Trend

Although DXY is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive. The contract managed to break above the 20-day moving average at 93.797 today for the first time since April 19th.

Order Flow

Selling might accelerate should prices move below the nearby swing low at 93.355 where further sell stops could get triggered. As prices are trading close to June's high at 94.430, upside momentum might speed up should the market mark new highs for the month.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for Dollar Index
ConditionForecastDirectionWinAvgWorstBestEvents
4 Consecutive Higher Closes TQ Pro Members Only
White Candle TQ Pro Members Only
Close to S1 Support TQ Pro Members Only
Price broke through Technical Resistance R1 TQ Pro Members Only
RSI(14) above 70 TQ Pro Members Only
More market conditions identified for TQ Pro members...
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