This article focuses on the technical outlook for the U.S. dollar index and some of the major FX pairs. If you are interested in reading about the fundamental prospects for the US currency, be sure to request the full Q1 forecast.
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DXY TECHNICAL ANALYSIS
The U.S. dollar, as measured by the DXY index, trekked upwards and climbed to its best level since November 2022 early in the fourth quarter, but then stalled and unexpectedly pivoted lower when prices were unable to decisively overcome confluence resistance near 107.3. This technical rejection paved the way for a prolonged sell-off that extended into late December, as seen in the chart below, sending the greenback to its weakest point in more than four months.
After recent losses, DXY is probing a key support zone ranging from 102.00 to 101.70 – an…
