$DXY Dollar Making Another Attempt to Breakout

USD 2019

Dollar Looking to Break Above 98 Level

As I wrote in my post from May 2nd: “The Dollar Index ($DXY) has been attempting to break the 98 Level for two years, pushing up against it five (!) times before finally breaking through (albeit briefly) the last week in April. The 98 level is significant also because it represents the 61.8% Fibonacci retracement from the January 2017 peak to the February 2018 low. The direction of the trend remains up and the dollar remains comfortably above the 200-day moving average, but the short-lived breakout of the 98 level also failed in advance of the recent Fed meeting. Where do we go from here?”

This morning, the dollar spiked up to 98.20, its second recent attempt to definitively break above resistance at the 98 level. The Relative Strength Index (RSI) has yet to confirm this move. I would like to see the RSI break above the downward trend line when prices get updated on the close.

The 200-day moving average has continued its steep upward sloping trajectory, and with dollar prices above both the 50 DMA and 200 DMA, all of the ingredients are in place for the bulls.

About the author

I am the founder of fibonacci.com and an avid trader. I am also the co-founder of Texas Precious Metals, a top US precious metals company. In 2006 I was a contestant on The Apprentice with future president, Donald Trump. I live in Texas with my wife and five children, where I spend my time dodging snakes, changing diapers, and charting.

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