• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

‘Death Cross’ Takes Shape in July

Forex Tips by Forex Tips
July 11, 2020
in Technical Analysis
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


US Dollar Talking Points

The technical outlook warns of a further depreciation in the US Dollar as a ‘death cross’ formation takes shape in July, but the DXY index may face range bound conditions over the coming days amid the failed attempt to test the June low (95.75).

Technical Forecast for US Dollar: Neutral

The US Dollar has given back the advance following the COVID-19 outbreak, with DXY now marginally higher from the start of the year as the Federal Reserve deploys a slew of unconventional tools to combat the economic shock from the pandemic.

In turn, DXY appears to have established a downward trend from the March high (102.99), with the trendline tracking a similar slope to the 50-Day SMA (98.06).

DXY Index Daily Chart

DXY Index Chart

Source: Trading View

The negative slopes in the simple moving averages offer a bearish outlook for the US Dollar index as the 50-Day SMA (98.06) crosses below the 200-Day SMA (98.27) in July, and the ‘death cross’ formation undermines the recent rebound in DXY as the recovery from the June low (95.72) stalls ahead of the June high (98.32).

As result, DXY may continue to track last month’s range as the decline from the start of July fails trigger an extreme reading in the Relative Strength Index (RSI) like the behavior seen in June.

With that said, DXY may continue to hold above the Fibonacci overlap around 95.90 (23.6% expansion) to 96.00 (50% retracement) amid the a failed attempt to test the June low (95.75), with lack of momentum to close below the 96.40 (78.6% retracement) region bringing the 97.10 (38.2% expansion) area on the radar.

Need a break/close above 97.10 to open up the overlap around 97.60 (23.6% expansion) to 98.20 (50% expansion), which largely lines up with trendline resistance.

— Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong





Source link

Share76Tweet47

Related Posts

US Dollar Breakouts Search for Momentum: USD/SGD, USD/IDR, USD/PHP, USD/THB

by Forex Tips
March 4, 2021
0

US Dollar, USD/SGD, USD/IDR, USD/PHP, USD/IDR – ASEAN Technical AnalysisUSD/SGD eyeing 100-day SMA as it trades within a Bearish...

Technicals Point to Higher Prices

Gold Trading Soft, Silver Price Trying to Hold Important Support

by Forex Tips
March 4, 2021
0

Gold & Silver Price OutlookGold trading near the bottom of a would-be long-term bull-flagSilver price trading on March trend-line,...

Dow Jones, DAX 30, FTSE 100, S&P 500 Forecasts for the Week

Monthly Forex Seasonality – March 2021: ‘Dollars’ Mixed but Gold, Stocks Favor Weakness

by Forex Tips
March 3, 2021
0

March FX Seasonality Overview:In recent years, March has produced EUR/USD gains, losses by USD/JPY, gold, and stocks. It’s a...

Brexit Latest: British Pound Rallies as EU-UK Agreement Nears

British Pound Forecast: Digesting Gains Around Spring Budget

by Forex Tips
March 3, 2021
0

British Pound Outlook:After a strong run higher, the British Pound may be due for a period of pullback, if...

Canadian Dollar Forecast: Loonie’s Wings Clipped?

by Forex Tips
March 3, 2021
0

Canadian Dollar Outlook:Canadian Dollar Flies Through TurbulenceThe Canadian Dollar was hobbled last week, nearly falling through key technical levels...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.