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02.09.2022 02:44 PM
US Dollar Index (DXY) Technical Analysis and Trading Tips for September 2, 2022

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As of this writing, the dollar index (CFD #USDX) is trading near 109.34, down from yesterday's new local 20-year high near 110.00.

Suppose the monthly report of the US Department of Labor, which is expected today at 12:30 (GMT), with data on the main indicators of the country's labor market for August, also lives up to market expectations and comes out with strong indicators. In that case, a breakdown of the local resistance level of 110.00 will be an "easy walk upside" for DXY.

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The next target for DXY will be the local resistance level and another "round" mark of 111.00.

In an alternative scenario, and after the breakdown of the short-term support level 109.18, the decline may continue to the support level 108.65 (200 EMA on the 1-hour chart). And to the support levels of 108.00, 107.28 (200 EMA on the 4-hour chart), if today's report of the US Department of Labor turns out to be very disappointing.

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A decline to the area below the support level of 106.75 (50 EMA on the daily chart) is unlikely.

The breakdown of the level of 110.00 will be a confirmation signal for increasing long positions on the dollar.

Support levels: 109.18, 108.65, 107.28, 106.75, 103.50, 102.00

Resistance levels: 110.00, 111.00

Trading Tips

Sell Stop 108.90. Stop-Loss 110.05. Take-Profit 108.65, 107.28, 106.75, 103.50, 102.00

Buy Stop 110.05. Stop-Loss 108.90. Take-Profit 111.00, 112.00, 113.00

Summary
Urgency
Analytic
Jurij Tolin
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