DXY closes higher for the 3rd day in a row
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.
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.
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.
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.
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.
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
|4 Consecutive Higher Closes||TQ Pro Members Only|
|White Candle||TQ Pro Members Only|
|Low close to previous low||TQ Pro Members Only|
|RSI(14) above 70||TQ Pro Members Only|
|Closed above last periods high||TQ Pro Members Only|
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