Dollar Index Consolidation: Will NFP Trigger an Upside Breakout?

Oct 2, 2024

Since its recent touch on the support zone back in August, the U.S. Dollar Index ( DXY ) has entered a period of consolidation, characterized by multiple attempts to break through this critical support level.
Despite several instances where the price briefly dipped below the technical support zone, each time, the market witnessed a strong reversal, with bulls stepping in to defend the level successfully.

From my perspective, we are nearing a potential upside reversal, and the upcoming Non-Farm Payroll report on Friday could serve as the catalyst for this move.
Currently, 102 is the key level to watch for confirmation of an upward breakout. Should the DXY break above this threshold, the next reasonable target would be around 104, marking a significant bullish shift in momentum.

Oct 3, 2024

Trade active

Yesterday, as expected, DXY broke above the falling trend line suggesting that, indeed, a bottom is probably in place.
Now the index faces horizontal resistance and, in the instance of a break, the road to 104 is relatively clear.

Oct 22, 2024

Trade closed: target reached

DXY has reached 104 resistance and target