Makes new 2021 highs
The US dollar index (DXY) raced above 2021 highs and extended to the highest level since July 22, 2021. The high price reached 95.26 on Friday.
In the process, the index took out the
- High for the year reached last week at 94.62 as well as the September high at 94.56.
- The price also reextended above the 38.2% of the move down from the March 2020 high at 94.54, and
- A swing area up to 94.742 (see red numbered circles).
In the new trading week, the area between 94.54 (38.2%) and 94.74 (high of the swing area) will be the close support. Buyers who pushed the price above that area last week, would want ideally to see that level hold support in the new trading week to keep and add to the control.
On the topside, a topside channel trend line cuts across near 96.00 and above that the 50% midpoint of the move down from the March 2020 high comes in at 95.157. That area would be the next major upside target to get to and through.
Fall back below the 38.2% with momentum, and traders will start to look back toward the upward sloping trend line at 93.73 (and moving higher).