DXY pops to highest close since January 2nd
Dollar Index (DXY) Technical Analysis Report for Feb 08, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, DXY finished the week 1.17% higher at 96.415 after gaining $0.125 (0.13%) today. Today's close at 96.415 marks the highest recorded closing price since January 2nd. Trading up to $0.100 lower after the open, the contract managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DXY as at Feb 08, 2019):
Friday's trading range has been $0.255 (0.26%), that's below the last trading month's daily average range of $0.405. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DXY.
Unable to break through the key technical resistance level at 96.460 (R1), the market closed below it after spiking up to 96.490 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 96.455 in the prior session, DXY ran into sellers again around the same price level today, missing to move higher than 96.490. The last time this happened on February 1st, DXY actually gained 0.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 96.560, upside momentum could accelerate should the contract be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Dollar Index. Out of 399 times, DXY closed lower 51.88% of the time on the next trading day after the market condition occurred.