The dollar index (DXY) fell by 1.1% last week, returning to the levels of the beginning of the month.
After a "neutral" Asian session, the dollar declines at the start of today's European trading session. As of this writing, #USDX CFDs are trading near 106.47, a support level in the form of 144 EMA on the 4-hour chart.
Judging by the current dynamics, CFD #USDX is developing a downward correction while remaining in a long-term bullish trend, above the key support levels of 101.50 (144 EMA on the daily chart), 100.20 (200 EMA on the daily chart), 100.00.
However, a break of the support level at 105.81 (200 EMA on the 4-hour chart) may push CFD #USDX to the medium-term support level of 105.00 (50 EMA on the daily chart). A deeper decline, given the strong bullish momentum and the long-term DXY upward trend, is not worth waiting for yet.
The signal for the resumption of purchases of CFD #USDX and the dollar index will be a breakdown of the short-term important resistance level of 107.04 (200 EMA on the 1-hour chart). The nearest growth targets are 108.00, 109.00, 110.00. The breakdown of the local resistance level of 109.00 will signal building up longs with the prospect of growth towards multi-year highs of 121.29 and 129.05 reached, respectively, in June 2001 and November 1985.
The technical indicators OsMA and Stochastic on the monthly CFD chart #USDX Stochastic are still and still on the side of the buyers.
Therefore, in anticipation of a resumption of growth near the support levels of 105.81, 105.00, it is logical to place pending orders to buy CFD #USDX. But when the support level of 105.00 is broken, you can already think about building a sales strategy for CFD #USDX.
Support levels: 106.30, 106.00, 105.81, 105.00, 104.00, 103.75, 103.00, 102.00, 101.50, 100.20, 100.00
Resistance levels: 107.04, 107.50, 108.00, 109.00
Trading Tips
Sell Stop 105.75. Stop-Loss 107.45. Take-Profit 105.00, 104.00, 103.75, 103.00, 102.00, 101.50, 100.20, 100.00
Buy Stop 107.45. Stop-Loss 105.75. Take-Profit 108.00, 109.00, 110.00, 111.00
Buy Limit 105.85, 105.10. Stop-Loss 104.75. Take-Profit 106.00, 107.00, 108.00, 109.00, 110.00, 111.00
