- The US Dollar has continued to gain, continuing last week’s move of strength to tally a 2% move off of last Tuesday’s lows. DXY[1] is now testing a key area of resistance around the 2017 swing-low, and the potential exists for a deeper move of USD-strength as we approach rate decisions out of Europe and Japan.
- The big question around the US Dollar is whether a short-term spate of strength might be able to turn into anything more. The down-trend in the Dollar is now more than a year-old, and there’s a case to be made for a short-squeeze scenario after the Greenback spent most of Q1 dwindling around three-year lows.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[2]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[3]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[4].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[5].
US Dollar Rallies to Fresh Three-Month Highs
US Dollar strength has continued[6], and the Greenback is now up by 2% from last Tuesday’s low. Considering that this is a non-levered currency, that’s a respectable move in a short period of time, and the US Dollar currently finds itself in a key zone of resistance that we looked at yesterday. This resistance zone is taken from a batch of swing-highs in early-March up to the 2017 swing-low at 91.01. DXY moved into this
