US Dollar Forecast Today

The DXY bulls and bears are locked in a struggle at a critical point

  • DXY bears are camping below the 102.20 crucial resistance level.
  • A breach of the 50% mean reversion level opens the door to an upward correction.

The US Dollar was under pressure in non-directional markets on Thursday, although it was pulled down by US disinflationary data, despite aggressive language from Federal Reserve officials.

The price is bouncing along the support, with an eye on a test of the initial bearish impulse's 38.2% Fibonacci level and a 50% mean reversion that will hit the neckline of the M-formation. This is currently at 102.20 and will be crucial in determining the trajectory for the remainder of the week. A break there raises the possibility of a move into trendline resistance at 102.50, while failure raises the case of a big bearish continuation.

A move down at this point increases the possibility of a breach of the 101.30s swing lows on the daily chart, as well as a fake-out that would have trapped US dollar bulls in the currency market.




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