US Dollar Index Technical Outlook

Breaking below the January range knocked DXY down to multi-year lows and did some real technical damage. We might see the dollar pause or chop sideways around support, but the bigger trend keeps pointing down as long as DXY holds below 97.45. For traders, a close under 95.60 would confirm the move toward lower support levels. Any bounce from here probably runs into trouble under resistance.

With month-end flows and Non-Farm Payroll on deck next week, expect more volatility. Stay quick on your feet into the monthly close and keep an eye on how each week wraps up. That’s going to give the clearest signal on where the trend is heading.

DXY Daily Chart