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FX.co ★ US Dollar Index Technical Analysis and Trading Tips for September 27, 2022

US Dollar Index Technical Analysis and Trading Tips for September 27, 2022

US Dollar Index Technical Analysis and Trading Tips for September 27, 2022

As of writing, the dollar index (CFD #USDX) is trading near 113.55, down from yesterday's new local high near 114.41.

The dollar's upward trend continues, pushing the DXY to new highs on its way to over 20-year highs near 120.00, 121.00. The break of yesterday's local high at 114.41 will be a confirmation signal of our assumption.

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US Dollar Index Technical Analysis and Trading Tips for September 27, 2022

Alternatively, the very first signal for short-term selling will be a breakdown of the short-term support level 113.12 (200 EMA on the 15-minute CFD #USDX chart). The target is the important short-term support level 111.42 (200 EMA on the 1-hour chart). Its breakdown, in turn, may provoke a deeper correction to the support levels of 109.40 (200 EMA on the 4-hour chart), 108.75 (50 EMA and the lower line of the rising channel on the daily chart). However, once again we note that this is an alternative and theoretically possible scenario.

US Dollar Index Technical Analysis and Trading Tips for September 27, 2022

Strong bullish momentum prevails based on fundamental factors, favoring long positions.

Support levels: 113.12, 111.42, 110.76, 109.40, 108.75, 105.00, 103.35

Resistance levels: 114.00, 114.41, 115.00

Trading Tips

Sell Stop 112.90. Stop Loss 114.30. Take-Profit 111.42, 110.76, 109.40, 108.75, 105.00, 103.35

Buy Stop 114.30. Stop-Loss 112.90. Take-Profit 114.41, 115.00, 116.00, 120.00

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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