empty
16.11.2022 06:24 PM
DXY Technical Analysis and Trading Tips for November 16–17, 2022

This image is no longer relevant

Today's positive data from the US Census Bureau's retail sales report supported the dollar.

According to the data presented, retail sales rose +1.3% YoY in October, which was better than the forecast of +1.0% growth and the previous zero value.

Dollar buyers perked up, but their optimism did not last long. The dollar index (DXY) reacted to this publication with only short-term and restrained growth.

At the same time, today, the price touched the key support level 105.65 (200 EMA on the daily chart of CFD #USDX).

This image is no longer relevant

The dollar, and its DXY index, remains negatively affected by last week's weaker-than-expected US CPIs. If the consumer price index presents another surprise next month, pointing to the already downward trend in inflation in the US, then the next increase in the Fed's interest rate will not be 0.75%, but 0.50%, and maybe 0.25%. In this case, there will be conversations among market participants and signals from the sides of the Fed leaders on the possibility of a pause in the cycle of tightening monetary policy of the American central bank.

The dollar needs another strong bullish impulse, and it is unlikely to appear until the beginning of next month, when the November report of the US Department of Labor is released on Friday, December 2. It is difficult to overestimate the importance of this report for the further dynamics of the dollar. If the data point to a significant deterioration in the US labor market, then at least a slowdown in monetary policy tightening cannot be avoided. And this will be a strong negative factor for the dollar.

This image is no longer relevant

From a technical point of view, a breakdown of the support levels 105.65 and 104.40 (50 EMA on the weekly CFD #USDX chart) will open the way for the dollar index towards values of 100.00, 99.00, 98.00 (200 EMA on the weekly chart).

In an alternative scenario, the breakdown of the 107.40 resistance level (144 EMA on the daily chart) will be the first signal for the revival of the bullish dynamics of the dollar and CFD #USDX, and the confirmation will be the breakdown of the 108.85 resistance level (200 EMA on the 1-hour chart). The nearest growth target after that is resistance levels 110.00 (50 EMA on the daily chart), 111.00.

Support levels: 105.65, 105.00, 104.40

Resistance levels: 107.00, 107.40, 108.00, 108.85, 109.00, 110.00, 110.40, 111.00

Trading Tips

SellStop 105.50. Stop Loss 107.10. Take-Profit 105.00, 104.40, 100.00, 99.00, 98.00

Buy Stop 107.10. Stop-Loss 105.50. Take-Profit 107.40, 108.00, 108.85, 109.00, 110.00, 110.40, 111.00

Jurij Tolin,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Jurij Tolin
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

How to Trade the GBP/USD Pair on July 14? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of GBP/USD The GBP/USD pair traded with a relatively substantial decline on Friday. Why did the British pound fall again while the euro remained

Paolo Greco 06:30 2025-07-14 UTC+2

How to Trade the EUR/USD Pair on July 14? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of EUR/USD On Friday, the EUR/USD currency pair continued its mild downward movement, in line with the current trend. We've been saying the same

Paolo Greco 06:30 2025-07-14 UTC+2

Trading Recommendations and Trade Breakdown for GBP/USD on July 14. The British Pound Maintains a Bearish Bias

The GBP/USD currency pair continued its downward movement throughout Friday. We cannot say there were strong reasons for this, but in the morning, the UK released reports on GDP (monthly

Paolo Greco 04:33 2025-07-14 UTC+2

Trading Recommendations and Trade Breakdown for EUR/USD on July 14. The Dollar Is Tired

The EUR/USD currency pair showed virtually no decline throughout Friday. As we warned in the previous article, the 1.1666 level is a strong one, and it would be difficult

Paolo Greco 04:33 2025-07-14 UTC+2

How to Trade GBP/USD on July 11h? Simple Tips and Trade Analysis for Beginners

Thursday Trade Review: GBP/USD, 1H Chart On Thursday, the GBP/USD pair continued its downward movement, mirroring the EUR/USD pair. The behavior of these two major currency pairs was nearly identical

Paolo Greco 08:43 2025-07-11 UTC+2

How to Trade EUR/USD on July 11th? Simple Tips and Trade Review for Beginners

On Thursday, the EUR/USD currency pair continued its weak downward movement in line with the current trend. We've been saying the same thing all week because very little is changing

Paolo Greco 08:36 2025-07-11 UTC+2

GBP/USD Trading Recommendations and Trade Review for July 11th

On Thursday, the GBP/USD currency pair continued its moderate decline. Over the past two weeks, the British pound has depreciated by 220 points, with approximately 150 of those losses occurring

Paolo Greco 08:30 2025-07-11 UTC+2

EUR/USD Trading Recommendations and Trade Review for July 11th

EUR/USD 5M Analysis On Thursday, the EUR/USD currency pair continued its sluggish decline, completely ignoring the fundamental backdrop. As a reminder, this week Donald Trump announced new tariffs targeting both

Paolo Greco 08:19 2025-07-11 UTC+2

How to Trade the GBP/USD Currency Pair on July 10th: Simple Tips and Trade Analysis for Beginners

Wednesday Trade Analysis: GBP/USD – 1H Chart On Wednesday, the GBP/USD pair was also stuck in a flat movement, with very low volatility. There were virtually no price movements during

Paolo Greco 08:56 2025-07-10 UTC+2

How to Trade the EUR/USD Currency Pair on July 10th: Simple Tips and Trade Analysis for Beginners

Wednesday Trade Analysis: EUR/USD – 1H Chart On Wednesday, the EUR/USD pair continued to trade in line with the prevailing trend from the previous week. Market activity was minimal throughout

Paolo Greco 08:48 2025-07-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.