U.S. Dollar Index (DXY weekly time frame analysisAs of the weekly time TVC:DXY frame, the U.S. Dollar Index (DXY) is trading around 106.59, which places it in an important Fibonacci retracement zone. Here’s an analysis of its current position:
Current Position on the Weekly Chart (DXY at 106.59):
1. Fibonacci Levels:
50% Fibonacci Retracement: The current level at 106.59 is near the 50% Fibonacci retracement level of the previous downtrend from 114.00 (2022 high) to 100.00 (2023 low). This retracement level is crucial as it often serves as a turning point. The 50% level is typically seen as a major resistance or support level.
61.8% Fibonacci Retracement: The next key level above 106.59 is 107.50, which corresponds to the 61.8% Fibonacci retracement. If DXY breaks through 107.50, it could signal a continuation toward the next key resistance near 108.50.
2. Support Levels:
If DXY fails to hold 106.00–106.50, the next potential support levels would be at 104.50, which corresponds to the 38.2% retracement of the broader move.
Outlook:
Bullish Scenario: If DXY stays above 106.50 and moves toward 107.50 or breaks it, this would suggest a continuation of the upward trend, potentially targeting 108.50 or higher.
Bearish Scenario: A drop below 106.00 could signal weakness, with the next significant support at 104.50.
The DXY’s behavior around these Fibonacci levels will likely be key in determining the next short- to medium-term direction for the dollar. Watching the upcoming U.S. economic data releases will be essential for confirming these technical signals.
