As the DXY index (USD) continues to strengthen, many traders would like to know how much further it is likely to rise. The simple answer is that from a historical perspective, the DXY reached a high of 151 in 1984, so there is plenty of travel left. We must consider the daily and monthly charts to view their current trajectory. The monthly is interesting because last month’s price action triggered the Quantum Dynamic Volatility indicator confirming the candle range is outside the ATR for this time frame. The reaction to this trigger is that the price action will most often retrace into the spread of the candle and consolidate before any direction is re-established, which is what we are seeing now. In addition, last month’s volatility candle gives us key support and resistance levels for the DXY.
The daily chart below is where we will find the week’s important support and resistance levels. On this chart, we are using both price based levels generated by the dynamic support & resistance indicator for MT4 along with the Camarilla pivots together with levels displayed on the volume point of control histogram.
