As of writing, the dollar index (DXY) is near 112.40, in the middle of the range formed between the local support and resistance levels 114.74 and 109.37. At the same time, the general upward dynamics of the dollar remains, pushing the DXY index towards more than 20-year highs near 120.00, 121.00. The breakdown of the local round resistance levels 114.00, 115.00 will be a signal that the DXY index will return to growth.
On the 15-minute CFD #USDX chart, the price dropped to the first important support level of 112.29 (200 EMA). If we assume that today's report of the Department of Labor will be strong, then from the current mark it is worth considering the possibility of entering a long position with a short stop at a level just below the 112.00 mark.
The breakdown of the local resistance levels 112.75, 113.10 will confirm our assumption about the resumption of growth of the dollar index and CFD #USDX.
In an alternative scenario, the downward correction of the dollar will continue, and CFD #USDX will fall to the support levels 111.70 (200 EMA on the 1-hour chart), 111.45 (200 EMA on the 4-hour chart).
A breakdown of support levels 110.90 (50 EMA on the daily chart), 109.63 (local support level) will sharply increase the risks of further weakening the dollar.
But anyway, above the key support levels 107.25 (144 EMA on the daily chart), 105.50 (200 EMA on the daily chart), CFD #USDX is in the zone of a long-term bull market.
Support levels: 112.29, 112.00, 111.70, 111.45, 110.90, 109.63, 107.25, 105.50
Resistance levels: 112.74, 113.09, 114.00, 114.74, 115.00
Trading Tips
Sell Stop 111.85. Stop Loss 112.75. Take-Profit 111.70, 111.45, 110.90, 109.63, 107.25, 105.50
Buy Stop 112.75. Stop-Loss 111.85. Take-Profit 113.09, 114.00, 114.74, 115.00