{"id":3111,"date":"2021-02-01T08:35:00","date_gmt":"2021-02-01T08:35:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=3111"},"modified":"2021-02-02T09:22:20","modified_gmt":"2021-02-02T09:22:20","slug":"us-dollar-index-technical-analysis-surrounded-by-bullish-patterns","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-surrounded-by-bullish-patterns\/","title":{"rendered":"US Dollar Index Technical Analysis &#8211; Surrounded by bullish patterns"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3111\" class=\"elementor elementor-3111\" 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-87cbd0c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"87cbd0c\" 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-7448787\" data-id=\"7448787\" 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-33e5f58 elementor-widget elementor-widget-text-editor\" data-id=\"33e5f58\" 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\/3hGFmRn\" target=\"_blank\" rel=\"noopener\">US Dollar Index<\/a> is poised for a major directional move on the foreign exchange market over the days and weeks ahead, as a number of major currency pair\u2019s look set to breakout against the greenback after weeks of back-and-forth trading action.<\/p><p>According to technical analysis, the US Dollar Index has been in a bearish market trend since late-May last year. A bearish trend is defined by an asset class trading below its key 200-day moving average.<\/p><p>In terms of fundamentals, the US Dollar Index has been sold by traders due to the fact that the Federal Reserve have dramatically increase their balance sheet since COVID-19 as they began implementing QE4.<\/p><p>Other factors that have weighed on the greenback during its downtrend has been the massive COVID-19 stimulus packages from the US government, and major bouts of uncertainty towards US politics.<\/p><p>The US Dollar Index has started to stabilize after months of losses, and now looks set to stage a potential comeback. The only concerning for traders with the US Dollar Index long trade is the prospect of the massive $1.9 trillion stimulus package that the US Democrat party may soon unleash on the US economy.<\/p><p>According to most analysts, the bullish case for the greenback at present comes from the prospect of improving US economy, rising inflation, and safe-haven inflows from COVID-19 concerns and also Wall Street\u2019s fears over stocks declining.<\/p><p>During the financial crisis of 2008 the US Dollar Index surged as traders sold stocks and flocked into the buck. With the ongoing fears about Main Street versus Wall Street, stock certainly also has the ability to move market lower. This could benefit the US Dollar Index.<\/p><p>According to the ActivTrader Market Sentiment tool traders are bullish towards the US Dollar Index. Retail traders typically exit emerging trends too earlier or lean against prevailing market trends. This does not mean that these traders are always on the wrong side, but we should remind ourselves that the overall trend is still to the downside, and the US Dollar Index could squeeze somewhat lower before staging a bullish breakout.<\/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-0287ea5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0287ea5\" 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-ba19b10\" data-id=\"ba19b10\" 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-dff934c elementor-widget elementor-widget-image\" data-id=\"dff934c\" 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<img decoding=\"async\" width=\"291\" height=\"104\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/USAIND.png\" class=\"attachment-large size-large wp-image-3136\" alt=\"\" \/>\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-22edf51 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"22edf51\" 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-ff08652\" data-id=\"ff08652\" 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-da6eb60 elementor-widget elementor-widget-text-editor\" data-id=\"da6eb60\" 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 a massive reversal could take place if buyers move the price above the 91.30 level. The reason being is that a large, inverted head and shoulder pattern with a 200-point upside projection will be activated.<\/p><p>The four-hour time frame also shows a notable head and shoulder pattern, which should be a concern for bulls. To invalidate the bearish price pattern, buyers need to move the price above the 91.00 resistance level.<\/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-846f54d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"846f54d\" 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-14af066\" data-id=\"14af066\" 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-f6139cc elementor-widget elementor-widget-image\" data-id=\"f6139cc\" 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<img decoding=\"async\" width=\"624\" height=\"299\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/USDIndMar21-4h_2.png\" class=\"attachment-large size-large wp-image-3137\" alt=\"\" \/>\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-1f5bfb1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f5bfb1\" 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-0e2a301\" data-id=\"0e2a301\" 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-48da80b elementor-widget elementor-widget-text-editor\" data-id=\"48da80b\" 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>Source by ActivTrader.<\/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-f0b0d41 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f0b0d41\" 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-aeab773\" data-id=\"aeab773\" 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-5d09a00 elementor-widget elementor-widget-text-editor\" data-id=\"5d09a00\" 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>If sellers activate the bearish price pattern then the US Dollar Index could fall towards the multi-year lows around the 89.00 support level. The triggered area or neckline of the bearish pattern is found around the 90.00 level. Overall, expect a major battle between the 91.00 to 90.00 area this week.<\/p><p><strong>US Dollar Index Medium-term Technical Analysis<\/strong><\/p><p>According to the daily time frame, a major bullish breakout will take place above a falling wedge pattern if the price moves above the 91.30 level this week. Due to the extended period that the US Dollar Index has spent inside the falling wedge a huge upside move should take place if the breakout comes to fruition.<\/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-137e5a4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"137e5a4\" 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-f51727b\" data-id=\"f51727b\" 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-89688ed elementor-widget elementor-widget-image\" data-id=\"89688ed\" 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<img decoding=\"async\" width=\"624\" height=\"299\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/USDIndMar21-1D_2.png\" class=\"attachment-large size-large wp-image-3138\" alt=\"\" \/>\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-02077ba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"02077ba\" 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-9dae1de\" data-id=\"9dae1de\" 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-5209d59 elementor-widget elementor-widget-text-editor\" data-id=\"5209d59\" 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>Source by ActivTrader.<\/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-c2fed97 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c2fed97\" 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-5ad2ff7\" data-id=\"5ad2ff7\" 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-c98e54a elementor-widget elementor-widget-text-editor\" data-id=\"c98e54a\" 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>It is also noteworthy that lower time frame analysis is also flagging the 91.30 level as an area of extreme importance. Overall, failure to breakout above the top of the falling wedge could result in a major US dollar sell-off towards the bottom of the wedge, around the 89.00 level.<\/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 poised for a major directional move on the foreign exchange market over the days and weeks ahead, as a number of major currency pair\u2019s look set to breakout against the greenback after weeks of back-and-forth trading action. According to technical analysis, the US Dollar Index has been in a bearish [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9],"tags":[45,42,40],"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 - Surrounded by bullish patterns - 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-surrounded-by-bullish-patterns\/\" \/>\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 - Surrounded by bullish patterns\" \/>\n<meta property=\"og:description\" content=\"The US Dollar Index is poised for a major directional move on the foreign exchange market over the days and weeks ahead, as a number of major currency pair\u2019s look set to breakout against the greenback after weeks of back-and-forth trading action.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-surrounded-by-bullish-patterns\/\" \/>\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=\"2021-02-01T08:35:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-02T09:22:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/02\/jorge-salvador-y36NKahybhg-unsplash-1-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"608\" \/>\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 - Surrounded by bullish patterns\" \/>\n<meta name=\"twitter:description\" content=\"The US Dollar Index is poised for a major directional move on the foreign exchange market over the days and weeks ahead, as a number of major currency pair\u2019s look set to breakout against the greenback after weeks of back-and-forth trading action.\" \/>\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-surrounded-by-bullish-patterns\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/us-dollar-index-technical-analysis-surrounded-by-bullish-patterns\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"US Dollar Index Technical Analysis &#8211; 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