DXY closes higher for the 2nd day in a row
Dollar Index (DXY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DXY ended the week -0.51% lower at 95.265 after gaining $0.145 (0.15%) today. Trading up to $0.290 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 19, 2018, DXY actually lost -0.78% on the following trading day. Closing above Thursday's high at 95.215, the contract confirmed its breakout through the previous session high after trading up to $0.150 above it intraday.
Daily Candlestick Chart (DXY as at Jan 11, 2019):
Friday's trading range has been $0.585 (0.62%), that's slightly below the last trading month's daily average range of $0.605. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DXY.
DXY managed to close back above the 100-day moving average at 95.250. Unable to break through the key technical resistance level at 95.320 (R1), the market closed below it after spiking up to 95.365 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Dollar Index. Out of 564 times, DXY closed lower 51.95% of the time on the next trading day after the market condition occurred.