US Greenback Highlights:
USD Index (DXY) making an attempt for a replay of the summer seasonEUR/USD the primary driver behind the DXYGBP/USD nonetheless holding up, however might succumb to promotingUSD/CAD making an attempt to recapture trend-line break
USD Index (DXY) making an attempt for a replay of the summer season
The US Greenback Index (DXY) didn’t fairly make it all the way down to the trend-line from September of final yr, but it surely did maintain the 200-day, comparatively talking, with solely a few minor current breaches. The surge up to now this week has an analogous look to it.
The push larger has momentum matching rallies that occurred from earlier multi-week lows, reminiscent of in June/July and September of final yr. These lows led to cost swings to new cycle highs. That might imply the 100-line may come into play earlier than year-end. A break under 97.11 and the trend-line will dent a bullish outlook, probably placing important strain on the Greenback.
US Greenback Index (DXY) Day by day Chart (again to new cycle highs quickly?)
U.S. Greenback Foreign money Index (DXY) Chart by TradingView
EUR/USD the primary driver behind the DXY
The Euro broke the channel off the October low, and with just a little extra weak spot it should haven’t any actual help to maintain it from operating decrease to the lows beneath 10900. As ~57% of the DXY index, the Euro would be the important driver of its subsequent transfer. A bump larger from right here can have the current highs, the September trend-line, and 200-day in play as resistance round 11175/90.
EUR/USD Day by day Chart (arrange for losses)
EUR/USD Chart by TradingView
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GBP/USD nonetheless holding up, however might succumb to promoting
Cable has held up comparatively effectively given the monster transfer final month. The digestion section may tackle the form of a wedge with just a little extra time, but it surely might want to maintain right here across the high slope of the channel off the September low. A breakdown under the slope and 12788 may convey some strain on GBP/USD and a extra pronounced pullback.
GBP/USD Day by day Chart (holding effectively thus far)
GBP/USD Chart by TradingView
USD/CAD making an attempt to recapture trend-line break
USD/CAD bounce has the 2012 trend-line again in play, thus far it’s not totally above however making an attempt to recapture the brink. A transfer above 13208 ought to do the trick and have extra upside in play in direction of the 200-day at 13274 and the Might trend-line simply above that stage. A breakdown by way of 13115 may point out current power to solely be a bounce and have the necessary 13000-level below assault.
USD/CAD Day by day Chart (ranges to look at)
USD/CAD Chart by TradingView
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—Written by Paul Robinson, Market Analyst
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