US Dollar, EUR/USD, GBP/USD Talking Points:
- The Q2 sell-off in the US Dollar[1] continues as the Greenback continues to peel back Q1 gains.
- EUR/USD[2] and GBP/USD[3] are both testing resistance levels of note, with Cable putting in a massive move to start the week.
- The analysis contained in article relies on price action[4] and chart formations[5]. To learn more about price action or chart patterns, check out our DailyFX Education[6] section.
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[7], 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[8].
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
Chart prepared by James Stanley[9]; USD, DXY on Tradingview[10]
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[11] at 90.
This confluent support helped to hold the lows, with buyers making their mark in the month of March, helping
