{"id":21110,"date":"2023-08-09T07:30:35","date_gmt":"2023-08-09T11:30:35","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21110"},"modified":"2023-08-09T07:30:35","modified_gmt":"2023-08-09T11:30:35","slug":"a-pivotal-moment-for-the-dollar","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/a-pivotal-moment-for-the-dollar\/","title":{"rendered":"A Pivotal Moment for the Dollar"},"content":{"rendered":"

On July 26, readers were alerted to an imminent rally in the U.S. dollar index (DXY).<\/a><\/p>\n

Since then, DXY has indeed traded about 2% higher.<\/p>\n

Can the dollar sustain its current rally, or is it more likely to continue breaking down?<\/p>\n

While it’s impossible to know for sure, DXY is flashing a few very important signals that we should be paying attention to…<\/p>\n

By keeping an eye on these signals, we can narrow the odds significantly in terms of what we can expect from DXY over the next few months.<\/p>\n

That’s why it’s always a good idea to keep a close eye on the technicals of the market. Where fundamental analysis can leave you feeling confused, a price chart is usually much clearer.<\/p>\n

Let’s walk through an updated price chart of DXY below. These signals place the dollar at a pivotal juncture. Knowing what to look for can be the difference between making or losing money as a trader.<\/p>\n

\"Image\"<\/p>\n

There are two important things going on with this price chart. The first is the parallel channel (blue lines) that DXY has been trading in over the last few weeks.<\/p>\n

When a market turns, as DXY did on August 4, it will almost always start trading within a parallel channel. Breaking the channel is often a strong sign that the move is over, and a new trend is either about to begin or resume.<\/p>\n

In the case of DXY, a break of the lower boundary of the parallel channel would likely mean a resumption of the ongoing bearish trend in the dollar.<\/p>\n

<\/p>\n

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Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

The second important feature to this price chart is the 200-period moving average (MA). This is an important technical indicator that identifies the medium\/long-term trend.<\/p>\n

As you can see, the 200-MA has been sloping downwards since DXY broke down hard in early July. This supports the idea of a bearish trend in the dollar.<\/p>\n

But the rally in DXY that readers have been alerted to <\/a>has now broken above the 200-MA.<\/p>\n

Now the big question is whether or not the dollar can sustain this rally higher. If it can’t, then we should see the dollar crash through the 200-MA over the next several days.<\/p>\n

On August 3, the dollar put in a top and started to trade lower once again. As of writing, DXY is hovering just over both the lower boundary line of that parallel channel as well as the 200-MA.<\/p>\n

This is a critical juncture for the dollar and will likely determine whether we see a period of sustained dollar strength or weakness to close out the year.<\/p>\n

Happy trading,<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

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READER MAILBAG<\/h2>\n<\/div>\n

Have you been trading the dollar this year?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

On July 26, readers were alerted to an imminent rally in the U.S. dollar index (DXY). <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21110","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21110"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21110\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21110"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21110"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21110"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21110"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}