Fxequity

USD Loses Momentum as Technical Ranges Maintain Agency


US Greenback Forecast: Impartial

  • US Dollar Index (DXY) loses steam beneath key psychological resistance
  • EUR/USD stalls at crucial help, beneath 1.16
  • USD/JPY continues to proceed alongside its upside trajectory as commodity costs proceed to run sizzling

The protected haven US Greenback has not too long ago misplaced momentum towards main foreign money pairs as fundamentals proceed to weigh on danger urge for food.

After breaking above the important thing psychological degree of 90.00 in June, the US Greenback Forex Index (DXY) has confirmed to be on a robust upward trajectory.

Nonetheless, as illustrated on the month-to-month chart beneath, this month’s crimson candle could also be a sign that additional draw back could also be on the playing cards until bulls can reclaim the systemic, outstanding development.

US Greenback Forex Index (DXY) Month-to-month Chart

US Dollar Outlook: USD Loses Momentum as Technical Levels Hold Firm

Chart ready by Tammy Da Costa utilizing TradingView

With costs now resting beneath the 50% retracement degree of the 2001 – 2008 transfer at 95.843, this degree will seemingly proceed to carry as sturdy resistance for each the brief and medium-term transfer.

EUR/USD Technical Evaluation

EUR/USD worth motion has presently stalled on the 200 day shifting common, coinciding with the 50% retracement of the 2018 – 2020 transfer.

With costs now hovering slightly below 1.160 on the weekly timeframe, the mix of rising inflation and hovering commodity costs might present an extra catalyst for the foremost pair over the subsequent week.

In the meantime, with the bearish momentum now dropping traction, bears will now must push beneath help on the 200 SMA at 1.157 for additional draw back to prevail.

EUR/USD Weekly Chart

US Dollar Outlook: USD Loses Momentum as Technical Levels Hold Firm

Chart ready by Tammy Da Costa utilizing TradingView

To study extra about worth motion or chart patterns, take a look at our DailyFX Education part.

USD/JPY Technical Evaluation

USD/JPY has been steadily rising since breakout out of the tight vary that had beforehand encapsulated the pair. As demonstrated on the weekly chart beneath, the important thing Fibonacci ranges of the 2015 – 2016 have continued to kind agency help and resistance ranges for worth motion and can seemingly proceed to take action for the upcoming transfer.

On the time of writing, the safe-haven currencies proceed to battle it out above crucial psychological degree of 114.00 with bulls now driving the weekly relative energy index (RSI) into overbought territory (above the 70 deal with).

USD/JPY Weekly Chart

US Dollar Outlook: USD Loses Momentum as Technical Levels Hold Firm

Chart ready by Tammy Da Costa utilizing IG Charts

For now, crucial resistance continues to carry on the three yr excessive of 114.55 with a break above this degree seeing a attainable take a look at of 115.

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and comply with Tammy on Twitter: @Tams707





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