DXY testing crucial resistance confluence into July openDXY holding yearly opening-range into Q3 – breakout pendingDXY testing critical resistance confluence into July open Above 90.82, a breach / close above 93 is required to verify DXY. Price Chart for the Week “Bottom line: looking for topside weariness early in the quarter to give way to greater drop,” we said in our DXY analysis at the start of Q2. We’ve found it! The index began the second quarter with a reversal candle that took the Dollar back to its February lows before rebounding. The immediate focus heading into the third quarter’s open is on the recent gain towards confluence downtrend resistance at 92.28/46, which is defined by the 75 percent parallel (blue), the 2018 yearly open, and the 23.6 percent Fibonacci retracement of the 2020 slide. Looking for a possible zone inflection. If the price breaks above the yearly high-week close at 93.01, expect a reaction. If attained with a break / close above, the long-bias will be viable towards the 2016 low-week close at 93.88 and the 38.2 percent retracement / March low at 94.47/65. The 61.8 percent retracement of the yearly range / 2017 low at 80.82-91.01, backed by the yearly open at 89.93, provides initial support; however, a break / close below would be required to signal the start of the broader downtrend towards the 2018 low-week close / 2021 bottom at 89.07/20. Bottom line: If price is headed higher, pullbacks should be limited to 90.82, with a breach above the 93-handle needed to signal a more significant bottom for the greenback. Technical Strategist Michael Boutros wrote this article.
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