Technical Outlook:
The EUR[3]/USD[4] has seen a nice push higher, but that could soon come to an end if the 2008 trend-line has anything to say about it. The trend-line running lower from 2008 across peaks in 2011, 2014, and 2018 could soon dent yet another rally. Watch how price action plays out around 11650/11750. Momentum has been slowing and price is extended, so it doesn’t appear it would take much to push the Euro into retracement mode at the least.
EUR/USD Daily Chart (2008 trend-line)
EUR/USD Chart by TradingView[5]
DXY is currently trading around the March low of 94.65, which is also not too far away from the 2014 trend-line (~94.15). In a somewhat extended state and around support, the Dollar Index has an increased likelihood of undergoing some type of snapback soon. Should momentum carry the index below noted support then a much broader move could be underway. Big spot as we head into next week…
DXY Daily Chart (March low, 2014 trend-line)
U.S. Dollar Currency Index (DXY) Chart by TradingView[6]
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX[11]
