DXY closes higher for the 3rd day in a row
Dollar Index (DXY) Technical Analysis Report for Jul 11, 2018
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.
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.
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.
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.
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.
While classical technical analysis indicates a bullish sentiment for the next trading day, our quantitative statistics show a different picture being bearish.