- Trading
- Trading
- Markets
- Markets
- Products
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Open account
- Try free demo
- GO Markets Social
- Platforms & tools
- Platforms & tools
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- Mobile trading platforms
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Courses
- Courses
- Introduction to forex
- First steps in forex
- Next steps in forex
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Trading hours
- Maintenance Schedule
- Fraud and scam awareness
- Legal documents
- Trading
- Trading
- Markets
- Markets
- Products
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Open account
- Try free demo
- GO Markets Social
- Platforms & tools
- Platforms & tools
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- Mobile trading platforms
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Courses
- Courses
- Introduction to forex
- First steps in forex
- Next steps in forex
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Trading hours
- Maintenance Schedule
- Fraud and scam awareness
- Legal documents
- Home
- News & Analysis
- Economic Updates
- US Dollar analysis – a technical perspective
News & AnalysisThe US Dollar Index has been on a bull run since January 2021, we can see a consistent uptrend, making higher highs breaking above and beyond the $103 dollar mark, which it hasn’t been above since December of 2002.
Looking at the monthly timeframe for the US Dollar Index, we can see around January of 2021 was the beginning of the double bottom reversal pattern. Now if we take a look at the pattern that’s currently forming at the top of the highlighted zone, can we see the similarities?
The yellow highlighted zone between $108.7 to $109.8 was taken from a major resistance from September 2002, where the price significantly dropped from in the past. Which was the last time that the US Dollar was sitting at the current price.
If previously in the past the US Dollar was pushed down at this major resistance, there is a high probability that it could happen again. Pairing the major resistance with the double top pattern that’s forming, we could expect the end of an uptrend for the US Dollar.
On a daily timeframe, the US dollar has been moving sideways, consolidating for a total of 8 days.
Struggling to break above the previous high, this can be seen as buyers losing control of the markets, and sellers could be coming in. A Break below the consolidation zone could confirm the beginning of the downtrend.
This could be helpful when looking at pairs that have a strong negative correlation with the US Dollar Index.
However, if the price pushes above and continues to rally, we can see the price potentially head up to $120.
Ready to start trading?
Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
Next Article
Will gold hold its support or will the USD push it below $1660
Will gold hold its support or will the USD push it below $1660 Gold has dumped again after recession fears and a strong US dollar continue to grip the market. With Gold priced in US dollars it means that when the USD is strong the price of gold and other commodities is reduced. In recent days, following on from Jackson Hole the price has slum...
September 1, 2022Read More >Previous Article
US equities extend losses into month end on weak US job data and hot EZ inflation
All major US indices were down for a fourth straight session as hawkish rhetoric from Central bankers and persistent inflation continues to keep the m...
September 1, 2022Read More >