• 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

USD Wedges into the Weekend

Forex Tips by Forex Tips
October 4, 2020
in Technical Analysis
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


US Dollar Talking Points:

  • After a jump last week, the US Dollar settled down, spending the latter-half of this week building into a symmetrical wedge pattern.
  • Can USD bulls continue to push? After a fairly bearish outlay since March, the door may be opening for reversal themes in the Greenback, as looked at in the Q4 technical forecast.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

It was a really busy week on the headlines and, at least initially, in the US Dollar. The latter portion of the week was like at least a little bit of a letdown, as the US Dollar spent the back-half of the week narrowing into a symmetrical wedge formation.

US Dollar Hourly Price Chart

USD Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

Taking a step back, the big item around the Greenback this week was bulls taking a backseat after last week’s fresh two-month-highs.

As looked at coming into September, the US Dollar ran into a big spot of long-term, confluent support. That area helped to reverse the trend, at least for the first few weeks of September; and buyers pulled back as this week opened. That pullback took on a bit more pressure as sellers jumped with a bit more aggression on Tuesday, and that bearish theme lasted through early-Wednesday trade, as well.

But, as looked at on Wednesday, the US Dollar found support at a key spot on the chart, taken from around the 93.60 level on DXY. That price helped to hold the lows and that’s when this course of digestion began to set-hold.

US Dollar Four-Hour Chart

US Dollar 4 hour price chart

Chart prepared by James Stanley; USD, DXY on Tradingview

US Dollar Bigger-Picture

So, 2020… it’s been a pretty crazy year, and we’re still not even 80% of the way through it. But the US Dollar has been along for the ride, initially jumping-higher as the virus was getting priced-in; and then reversing all of that move and then some as calm was restored (at least in markets).

That big picture support that came into play on the first day of September was also the third and final zone of support looked at in the Q3 technical forecast. For Q4, I took a look at the other direction as a number of risks have stacked up; and the technical backdrop appears open for as such. The near-term look contributes little at this point, and for that bullish theme to continue showing promise, a hold of support around the 93.60 level that came into play this week can keep that door open. For invalidation – the subordinated support around the 92.71-92.79 area could function in this regard.

To get access to the Q4 technical forecast for the US Dollar, the link below will help to get that all set up.

USD Forecast

USD Forecast

Recommended by James Stanley

Download our fresh Q4USD Forecast

US Dollar Monthly Chart

US Dollar Monthly Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

— Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX





Source link

Share76Tweet47

Related Posts

USD/MXN Picks Up Buyer Support

by Forex Tips
January 17, 2021
0

USD/MXNTechnical Forecast: Neutral Not much has changed in the USD/MXN daily chart since I talked about it last week....

US Dollar Primed to Rise? USD/SGD, USD/IDR, USD/PHP, USD/PHP

USD Surges as Index Rebounds off Trend Support

by Forex Tips
January 17, 2021
0

US Dollar Technical Price Outlook: DXY Weekly Trade LevelsUS Dollar technical trade level update – Weekly ChartUSD mounts largest...

Crude Oil Price Struggles For Momentum- Brent Oil Forecast

Pullback at Hand Before Next Leg Higher?

by Forex Tips
January 17, 2021
0

Crude Oil Technical Forecast – BearishCrude oil prices fade just before testing recent yearly high Bearish RSI divergence signals...

GBP Supported by Covid Vaccination Hopes

by Forex Tips
January 17, 2021
0

Sterling (GBP/USD and EUR/GBP) Price, Analysis and Charts:GBP/USD – Two steps forward, one step back. EUR/GBP continues to press...

USD/JPY Triangle Builds into Wedge

by Forex Tips
January 16, 2021
0

USD/JPY Technical Forecast: BullishUSD/JPY started the week by continuing the prior week’s jump, but prices soon ran into a...

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.