US Dollar Price Action Setups: EUR/USD, GBP/USD

The US Dollar put in a quick move of weakness to start the week, furthering the Q2 theme that’s seen a large chunk of Q1 gains wiped out. This was a central focus of the Q2 Technical Forecast for the US Dollar, in which I looked at the monthly chart while highlighting the fact that last quarter’s strength looked as though it was a counter-trend move after an oversold US Dollar found support at a long-term Fibonacci level.

The chart below is an updated version of what’s in that Q2 Technical Forecast, and if you’d like to download the report in full, the link below can get that set up:

US DOLLAR MONTHLY PRICE CHART

US Dollar Monthly Price Chart

Chart prepared by James StanleyUSD, DXY on Tradingview

On the below weekly chart, we can get a better idea for how this Q2 theme has started to set-in. The US Dollar bottomed in the first week of Q1, after which a grind developed around Fibonacci support in the vicinity of the psychological level at 90.

This confluent support helped to hold the lows, with buyers making their mark in the month of March, helping to push the Greenback up to a fresh four-month-high on the final trading day of Q1.

US DOLLAR WEEKLY PRICE CHART

US Dollar Weekly Price Chart

Chart prepared by James StanleyUSD, DXY on Tradingview

US DOLLAR SELL-OFF SINKS TO FIBONACCI SUPPORT

On the below Daily chart, I’ve added a Fibonacci retracement around that major move in the month of March. Prices have already begun to test the 61.8% retracement of that major move but, for now, it appears this line-in-the-sand is helping to set support. This also highlights the potential for lower-high resistance around that prior batch of short-term support that helped to hold the lows on Thursday and Friday of last week. This plots to around 91.56 on the DXY.

US DOLLAR DAILY PRICE CHART

US Dollar Daily Price Chart

Chart prepared by James StanleyUSD, DXY on Tradingview

EUR/USD PEEKS ABOVE 1.2000 – WHEN MIGHT IT PEAK?

1 2 3
View single page >> |

Disclaimer: DailyFX, the free news and research website from IG, is one of the world's leading sources for news and analysis on the ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.