Talking Points:
- US Dollar strength has continued and the currency has traded up to fresh one-year highs, testing above the 95.53 resistance swing that had showed up last month. This continues what has become a rather pronounced rally in the Greenback after the earlier-week test of support, and this keeps the door open for bullish continuation as we move deeper into the year.
- This continuation of USD strength has come along with bearish pushes in both GBP/USD and EUR/USD[1], each of which carries varying degrees of continuation potential. In GBP/USD[2], traders would likely want to observe oversold conditions as Daily RSI has been showing divergence for some time now, and the pair is testing a key psychological level. Meanwhile in EUR/USD[3], we have an ECB meeting on the calendar for next week and the pair is approaching a key area of support around the 1.1500 level; of which a break-through can open the door for bearish breakout strategies.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
US Dollar to Fresh One-Year Highs
The US Dollar’s bullish bounce from support[10] took a short break yesterday
