Today I’m going to show you the level to watch on the US Dollar Index (DXY).
If the dollar is going to continue higher, it must hold the level I share in the video below.
I’ll also give my thoughts on where the dollar is headed later this year.
Watch the video below and scroll down for the annotated charts and analysis.
The dollar index is pulling back today after an intense rally over the last few weeks.
I thought we might get a 107.00 retest before a pullback, but markets had other plans.
A 105.60 retest seems likely following today’s price action, which becomes a must-hold level for dollar bulls.
Although we haven’t seen a weekly close above 105.60, we have seen the DXY close multiple days above the level.
So if you’re trading major currency pairs like EURUSD and GBPUSD, it might be wise to anticipate some relief for those pairs.
But keep a very close eye on DXY 105.60, as that level is bound to attract dollar bids.
Key resistance for DXY remains 107.70.
However, I maintain what I said months ago about the dollar eventually taking the imbalance between 109 and 110.
As always, time will tell.
Only a sustained break below 105.60 would turn me bearish on the dollar.
Until then, I remain a dollar bull.
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