empty
09.01.2024 02:39 PM
U.S. Dollar Index: trading scenarios on January 9, 2024

This image is no longer relevant

The dollar remains stable ahead of the key publications on Thursday, although the growth of its DXY index has also paused near the levels of 102.00, 102.10. The sluggish dynamics in the currency market and range-bound trading may continue until these publications on Thursday.

Clearly, the market and the dollar need new drivers, which could be provided by fresh data on inflation in the USA, to be published on Thursday.

This image is no longer relevant

From a technical point of view, the dollar index (CFD #USDX in the MT4 terminal) is trying to revive the long-term upward dynamics, having rebounded at the end of December from the key long-term support level of 100.55 (200 EMA on the weekly chart) and breaking into the zone above the important long-term support level of 101.70 (144 EMA on the weekly chart).

The breakout of the recent local high of 102.70 and the important short-term resistance level of 102.83 (200 EMA on the 4-hour chart) may signal the accumulation of long positions on the dollar index and CFD #USDX.

In case of further growth, the breakout of the key medium-term resistance level of 103.80 (200 EMA, 144 EMA on the daily chart) will confirm the entry of the dollar index into the medium-term bull market zone.

This image is no longer relevant

An alternative scenario will be associated with the breakdown of the key long-term support level of 100.55. Further decline and break below the 100.00 mark will move DXY into the zone of a long-term bear market, making long-term short positions preferable from a technical point of view.

The earliest signal for the start of implementing this scenario may be the breakdown of the short-term support level of 102.13 (200 EMA on the 1-hour chart) and the 102.00 mark, and the breakdown of the important support level of 101.70 as confirmation.

This image is no longer relevant

Support levels: 102.13, 102.00, 101.70, 101.00, 100.55, 100.00

Resistance levels: 102.70, 102.83, 103.00, 103.20, 103.80, 104.00

Trading Scenarios

Main scenario: Buy at market, Buy Stop 102.85. Stop-Loss 101.90. Targets 103.00, 103.30, 103.70, 103.85, 104.00, 105.00, 105.98, 106.00, 106.80, 107.00, 107.09, 107.32, 107.80, 108.00, 109.00, 109.25

Alternative scenario: Sell Stop 101.90. Stop-Loss 102.50. Targets 101.70, 101.00, 100.55, 100.00

'Targets' correspond to support/resistance levels. This does not mean that they will necessarily be reached, but can serve as a guide when planning and placing your trading positions.

Jurij Tolin,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on May 1st (Review of the Morning Trades)

In my morning forecast, I focused on the 1.3282 level and planned to make entry decisions based on it. Let's take a look at the 5-minute chart and see what

Miroslaw Bawulski 18:42 2025-05-01 UTC+2

EUR/USD: Trading Plan for the U.S. Session on May 1st (Review of the Morning Trades)

In my morning forecast, I focused on the 1.1320 level and planned to make market entry decisions based on it. Let's take a look at the 5-minute chart

Miroslaw Bawulski 18:38 2025-05-01 UTC+2

How to Trade the GBP/USD Currency Pair on May 1? Simple Tips and Trade Analysis for Beginners

The GBP/USD pair also showed a downward movement on Wednesday, for which there were no valid reasons. There were no noteworthy events in the UK yesterday, while the U.S. released

Paolo Greco 06:42 2025-05-01 UTC+2

How to Trade the EUR/USD Currency Pair on May 1? Simple Tips and Trade Analysis for Beginners

Wednesday's Trade Analysis: 1H chart of the EUR/USD pair. The EUR/USD currency pair continued its downward movement within the sideways channel on the hourly time frame on Wednesday —

Paolo Greco 06:40 2025-05-01 UTC+2

GBP/USD: Trading Plan for the U.S. Session on April 30th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.3376 level and planned to base market entry decisions on it. Let's take a look at the 5-minute chart and analyze

Miroslaw Bawulski 13:15 2025-04-30 UTC+2

EUR/USD: Trading Plan for the U.S. Session on April 30th (Review of Morning Trades)

In my morning forecast, I drew attention to the 1.1378 level and planned to base market entry decisions on it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 13:13 2025-04-30 UTC+2

How to Trade the GBP/USD Pair on April 30? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair corrected downward after another surge on Monday. No fundamental or macroeconomic reasons supported such movements on either

Paolo Greco 06:04 2025-04-30 UTC+2

How to Trade the EUR/USD Pair on April 30? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair continued to trade within a sideways channel, which is now visible on virtually any timeframe

Paolo Greco 06:04 2025-04-30 UTC+2

Trading Recommendations and Analysis for GBP/USD on April 30: The Pound Has Cooled Down, But for How Long?

On Tuesday, the GBP/USD currency pair failed to continue the upward movement it had started so vigorously on Monday. It is worth recalling that there were no solid reasons

Paolo Greco 03:29 2025-04-30 UTC+2

Trading Recommendations and Analysis for EUR/USD on April 30: The Market Remains in a State of Hibernation

The EUR/USD currency pair continued to trade within a sideways channel throughout Tuesday. The flat movement is visible in the chart above. Last week, the pair briefly broke

Paolo Greco 03:29 2025-04-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.