The US Dollar Index (DXY) remains indecisive to start the new year, but a breakout from this range would mean fresh opportunities.
In today’s video, I discuss what the US dollar needs to do to offer opportunities from the majors next week.
I also share my view on where the dollar is likely to go from here.
Watch the video below and scroll down for the annotated charts and analysis.
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The US dollar remains indecisive between 101.90 support and 102.60 resistance.
That’s been the case since January 2nd when the DXY reclaimed 101.90, flipping the level back to support.
We saw dollar bulls defend 101.90 during the January 5th non-farm payroll.
However, the 102.60 resistance area has proved to be too much for buyers, at least so far.
Forex traders should anticipate more indecision from markets until the DXY breaks one of these two levels.
Remember that it will take a daily close above 102.60 or below 101.90 to confirm the break.
As you can tell from the last eight sessions, intraday breaks aren’t enough to justify a breakout.
So, for next week, a sustained break above 102.60 on the daily time frame would open up 103.50 and the 104.20 highs.
Alternatively, a sustained break below 101.90 would expose 100.85 and potentially the 99.60 low from last July.
I remain cautiously bullish on the DXY while above 101.90.
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