US Dollar Index Negates Bull Flag – May Opening Range in Focus
The US Dollar Index has negated a bull-flag formation following the failed attempt to clear the April high (106.52), but DXY may track the positive slope in the 50-Day SMA (104.70) as it holds above the moving average.
DXY Outlook
DXY may threaten the opening range for May as it carves a series of lower highs and lows, with a break/close below 105.00 (23.6% Fibonacci extension) raising the scope for a test of the monthly low (104.52).
Next area of interest comes in around the April low (103.88), but lack of momentum to push below 105.00 (23.6% Fibonacci extension) may keep DXY above the moving average, with a break/close above 105.80 (61.8% Fibonacci extension) bringing the monthly high (106.49) on the radar.
--- Written by David Song, Strategist at FOREX.com
DXY Outlook
DXY may threaten the opening range for May as it carves a series of lower highs and lows, with a break/close below 105.00 (23.6% Fibonacci extension) raising the scope for a test of the monthly low (104.52).
Next area of interest comes in around the April low (103.88), but lack of momentum to push below 105.00 (23.6% Fibonacci extension) may keep DXY above the moving average, with a break/close above 105.80 (61.8% Fibonacci extension) bringing the monthly high (106.49) on the radar.
--- Written by David Song, Strategist at FOREX.com