Forex Trading

DXY Battles 104.45 Resistance Ahead Of The Holiday Weekend

The US Dollar Index (DXY) is fighting with 104.45 resistance today, a key level that will likely determine what we see from the dollar next week.

In today’s video, I discuss what’s required from DXY bulls to open up levels like 105.00 and 106.00, and whether we’re likely to get a sweep of Tuesday’s wick near 104.00.

Let’s get started!

The DXY is battling the 104.45 resistance today after piercing the level intraday.

However, the daily close is what will determine whether 104.45 remains intact as resistance or flips to support.

Given this week’s illiquid conditions, I wouldn’t be surprised to see the DXY remain below 104.45 and eventually sweep Tuesday’s lower wick.

We often see long wicks get filled, especially during consolidation periods.

That said, if the DXY can reclaim 104.45 on a daily closing basis, then a sweep of that lower wick near 104.05-104.15 is less likely.

Keep in mind that Friday is the last trading day of the month and quarter, so we could see erratic price action from markets.

It’s also a big bank holiday, so expect this week’s illiquid conditions to continue into the weekend.

Regardless of whether we see the DXY fill Tuesday’s lower wick or not, I’ll remain cautiously bullish on the US dollar while above the 103.80-104.00 region on a daily closing basis.

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