DXY Technical Analysis: a challenge to 2018 highs in the mid-95.00s gathers traction.

• The index receded from yesterday’s YTD peaks in at 95.65 on comments by President Trump. The correction lower, however, found strong contention in the hourly low at 94.95.
• The outlook for the buck remains positive while sustained by the 3-month support line, today at 94.51, with the immediate target now at 96.04 (50% Fibo retracement of the 2017-2018 drop).
• The bullish stance remains in play after the index charted an ‘outside day’ on Tuesday and the subsequent follow through to levels beyond 95.60.
• The daily ADX reads 23.50, still indicative of a weak trend. The current momentum, however, seems to be gathering some momentum.

DXY hourly chart

Daily high: 95.50

Daily low: 94.99

Support Levels

S1: 94.85

S2: 94.52

S3: 94.12

Resistance Levels

R1: 95.58

R2: 95.98

R3: 96.31