The dollar had its largest weekly gain last week since February, and carved its first higher high since early March.
Despite heavy criticism, I was cautiously bullish the dollar throughout April, and my bullish bias has only increased in May.
On Monday, I wrote how the US Dollar Index (DXY) 102.12 had flipped to support, and Tuesday bounced from 102.20.
So what’s next for the dollar?
While nobody knows what’s next for any market, I continue to think the DXY is heading back to the 105.60 range highs.
But first, bulls will face a significant test at the 103.50 yearly open.
We may see a pullback from this region, given the significance on the higher time frames.
That lines up with support areas like 1.0750 on the EURUSD chart.
But regardless of whether we get a pullback from the dollar, the recent price action combined with the 100.80 to 105.60 range leaves me thinking we see the dollar higher later this year.
Alternatively, a daily close below the 102.00 area would invalidate the bullish outlook, but 100.80 is the critical level for DXY bulls.
Join Discord to watch today’s members-only video on the dollar and other currency pairs, and see my trades in real-time.
Want Free Lifetime Access to our private Discord trading group?
Register with one of our partnering brokers for access to:
• Two analysis videos every weekday (forex and crypto)
• See my trades in real-time (entries, stops, targets)
• Exclusive trade setups, charts, and market insights
• Over 1k members to help you, including full-time traders
Join us today for free! Limited time offer.
Ive taken note of your blogs on USD. Have had a great run on USD/JPY, am still on it 300, plus pips up since since last thursday, also short on USD/EUR and thats going well.
Thankyou for your emails and all the work you put in to help others. Congrats on your baby boy,
Love to hear it! Glad the content is making you money. Cheers.
Thank you very much sire for these valuable leassons.
Thanks Justin good analysis
No set up for past four days, is it another break?