{"id":20790,"date":"2022-01-14T07:11:00","date_gmt":"2022-01-14T07:11:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=20790"},"modified":"2022-01-14T22:51:40","modified_gmt":"2022-01-14T22:51:40","slug":"us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot\/","title":{"rendered":"US Dollar Index Technical Analysis &#8211; Preparing to test initial breakout spot"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20790\" class=\"elementor elementor-20790\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c40c174 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c40c174\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f86373d\" data-id=\"f86373d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6f4442a elementor-widget elementor-widget-text-editor\" data-id=\"6f4442a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The <a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\" rel=\"noopener\">US dollar index<\/a> is sliding rapidly lower on the foreign exchange market, as the recent reversal from just below the 97.00 handle shows few signs of stopping any time soon.<\/p><p>We are currently seeing one of the largest sentiment biases towards the greenback. With the majority of retail traders appear to be getting crushed by this latest leg lower in the buck.<\/p><p>Later I will expand further on the sentiment metrics according to the ActivTrader platform. For me, I will discuss why the US dollar index is embarking on another round of selling.<\/p><p>The US dollar index closed the third straight day in the negative territory largely due to the decline in the annual Producer Price Index seen in the December PPI inflation report.<\/p><p>This is a similar effect we saw on Wednesday, where traders are selling the buck when inflation data is not coming in as hot as expected. This is because FED rate hike expectations are decreased.<\/p><p>Additionally, the greenback struggles to find demand as the benchmark <a href=\"https:\/\/bit.ly\/3pZAGfs\" target=\"_blank\" rel=\"noopener\">10-year US Treasury bond yield<\/a> fell nearly 2%, putting additional weight on the world\u2019s reserve currency.<\/p><p>Later today we see December Retail Sales, Industrial Production data and the University of Michigan&#8217;s advance Consumer Sentiment Index for January. Expect more volatile moves in the buck.<\/p><p>The ActivTrader market sentiment tool is showing that some 94 percent of traders are bullish towards the US dollar index. This is bad news bulls as typically such overstretched sentiment from the retail crowd usually hints at an ongoing short squeeze on retail traders.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2b6aada elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2b6aada\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cde300c\" data-id=\"cde300c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4adbc15 elementor-widget elementor-widget-image\" data-id=\"4adbc15\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"453\" height=\"164\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdind-chart.jpg\" class=\"attachment-large size-large wp-image-20794\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cb47314 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cb47314\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4f42494\" data-id=\"4f42494\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-664af5c elementor-widget elementor-widget-text-editor\" data-id=\"664af5c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>US Dollar Index short-term Technical Analysis<\/strong><\/p><p>Looking at the four-hour time frame, the technicals looking heavily bearish, with the US dollar index officially activated a large head and shoulders pattern very sharply to the downside.<\/p><p>According to technical analysis, a break under the 95.40 level has activated this huge bearish price pattern. The only relief for bears is that the downside target of the pattern has largely been met.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3d87ee1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3d87ee1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-97de7a6\" data-id=\"97de7a6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-15bf177 elementor-widget elementor-widget-image\" data-id=\"15bf177\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"528\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdind-4h-2.jpg\" class=\"attachment-large size-large wp-image-20796\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3782538 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3782538\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-518e8e6f\" data-id=\"518e8e6f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aec1a0c elementor-widget elementor-widget-text-editor\" data-id=\"aec1a0c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e20420d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e20420d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7184149\" data-id=\"7184149\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-860c8a2 elementor-widget elementor-widget-text-editor\" data-id=\"860c8a2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>US Dollar Index Medium-term Technical Analysis<\/strong><\/p><p>The medium-term picture for the US dollar index still looks to be very bullish if bulls can somehow recover the price above the 94.80 level according to the daily time frame. This is of course formerly the top end of the multi-year price range for the greenback.<\/p><p>We could see a key technical test of the former breakout spot for the US dollar index of its multi-year price range, around the 93.90 level. This is the area I am watching if weakness under 94.80 persists.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a0d57a6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a0d57a6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e48d03d\" data-id=\"e48d03d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0241d28 elementor-widget elementor-widget-image\" data-id=\"0241d28\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"526\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdind-1d-2.jpg\" class=\"attachment-large size-large wp-image-20797\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8541c58 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8541c58\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-313b219c\" data-id=\"313b219c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-159b41a6 elementor-widget elementor-widget-text-editor\" data-id=\"159b41a6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The US dollar index is sliding rapidly lower on the foreign exchange market, as the recent reversal from just below the 97.00 handle shows few signs of stopping any time soon. We are currently seeing one of the largest sentiment biases towards the greenback. With the majority of retail traders appear to be getting crushed [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[42,40,71],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US Dollar Index Technical Analysis - Preparing to test initial breakout spot - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Dollar Index Technical Analysis - Preparing to test initial breakout spot US Dollar Index Technical Analysis - Preparing to test initial breakout spot\" \/>\n<meta property=\"og:description\" content=\"The US dollar index is sliding rapidly lower on the foreign exchange market, as the recent reversal from just below the 97.00 handle shows few signs of stopping any time soon.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-14T07:11:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-14T22:51:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/04\/GettyImages-157914304.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"478\" \/>\n\t<meta property=\"og:image:height\" content=\"282\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"US Dollar Index Technical Analysis - Preparing to test initial breakout spot US Dollar Index Technical Analysis - Preparing to test initial breakout spot\" \/>\n<meta name=\"twitter:description\" content=\"The US dollar index is sliding rapidly lower on the foreign exchange market, as the recent reversal from just below the 97.00 handle shows few signs of stopping any time soon.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-preparing-to-test-initial-breakout-spot\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"US Dollar Index Technical Analysis &#8211; 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