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U.S. Dollar Index Breaks 5-Year Average

By Brian TwomeyForexJan 12, 2022 05:48PM ET
U.S. Dollar Index Breaks 5-Year Average
By Brian Twomey   |  Jan 12, 2022 05:48PM ET
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The US dollar index’s 5-year average at 95.25 broke lower today and dead stopped at 94.95 or the midpoint from 95.25 and next vital level below at 94.70. To continue, DXY must break 94.70, then 94.20, and 93.71. The final bottom is located at 92.00’s and 91.00’s.

DXY’s break sent non-USD higher to not only become overbought but approach high levels. GBP/USD next is 1.3715 and 1.3760. Short is the way forward.


As written Sunday, EUR/USD broke 1.1387 and traded to 1.1422 and continued higher to 1.1452. If DXY travels lower, EUR/USD targets 1.1473, 1.1509, and 1.1545. Below break at 1.1436 coincides with DXY 95.25. Below EUR/USD targets 1.1363 and 1.1290.


Deeply oversold USD/JPY next below is located at 113.97. Failure to break, weekly target for longs remains 115.90 and 116.01. The target) at 114.85 achieved however lows traded to 114.30’s.


AUD/USD next above 0.7303, 0.7332 and 0.7351. Break lower at 0.7356 targets much lower. As written many times, NZD/USD big break 0.6840 and 0.6854. NZD/USD dead stopped 0.6856. Next above 0.6867.

Watch overbought AUD/JPY 82.69 for lower and NZD/JPY 78.25.

GBP/JPY 157.00’s trades at the top of multi year range. CHF/JPY 123.96 for lower.


CAD/JPY remains deeply overbought to follow its brother AUD/JPY. Look for CAD/JPY target at 90.96. Deeply oversold USD/CAD same old story, 6 months later. Vitals remain at 1.2262, 1.2647 and 1.3026.


Gold traded to $1833 highs on Jan. 3 and achieved lows at $1781 on Jan. 7. Trade instruction targets above 1805.10 and excellent short entries are found at $1818.48, $1864.53, $1874.58, and $1912.09.

2, 5, 10, and 30-Year Bonds

The 2-Year range was located from 0.3376 to 0.8871. Above 0.8871, targets the range from 0.8871 to 1.2865. The 2-year achieved 0.9497. The 5-Year trades 1.0870 to 1.4927. Above 1.4927 targets an 8 point range from 1.4927 to the 5-year monthly average at 1.5744. Highs achieved 1.5565.

The 10-Year traded a range from 1.4564 to 1.8095. Highs achieved 1.8060, and the range held. The 30-Year trades two ranges from 1.7987 to the 1-year average at 2.0261 then the 3-Year at 2.0581 and 2.3126. Highs achieved 2.149. DXY 95.25 is the overall driver to currency and markets.

U.S. Dollar Index Breaks 5-Year Average

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U.S. Dollar Index Breaks 5-Year Average

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