DXY closes higher for the 3rd day in a row

Dollar Index (DXY) Technical Analysis Report for Jul 11, 2018

Highlights

DXY rallies 0.63% closing $0.595 higher
DXY dominated by bulls lifting the market higher throughout the day
DXY finds buyers at key support level
DXY pushes through 20-day moving average
DXY closes higher for the 3rd day in a row

TQ Sentiment

Report Sentiment:
70% Bullish
Technical Forecast:

Overview

Moving higher for the 3rd day in a row, DXY ended Wednesday at 94.485 surging $0.595 (0.63%). This is the biggest single day gain in over two weeks. Today's closing price of 94.485 marks the highest close since July 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 94.225, the market confirms its breakout through the previous session's high having traded $0.310 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily chart for DXY

Volatility

Wednesday's trading range was $0.715 (0.76%), that's slightly above last trading month's daily average range of $0.630. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.

Support/Resistance

After trading as low as 93.820 during the day, Dollar Index bounced off the key support level at 93.830. The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key resistance level at 94.640. After having been unable to move lower than 93.750 in the prior session, the contract found buyers again around the same price level today at 93.820.

Trend

Though 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 market managed to break above the 20-day moving average at 94.393 today for the first time since June 14th.

Order Flow

With prices trading close to this year's high at 95.255, upside momentum might accelerate should Dollar Index be able to break out to new highs for the year.

Conclusion

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

Market Conditions for Dollar Index

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DXY pushes through key resistance level

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