Talking Points:
- EURUSD eyes $1.1200 as immediate support.
- USDJPY needs to clear ¥123.90, ¥124.61 before 'in the clear.'
- See the June forex seasonality report.
The USDOLLAR Index has broken the downtrend from the 6/5 and 6/17 highs. While EURUSD may already be in the early stages of two triangles breaking down, USDJPY has yet to clear its first hurdles in its breakout. With Euro short positioning at its thinnest level since late-July 2014, when priced traded around $1.3500, and Yen short positioning coming off of its thinnest levels in nearly three years, neither short EURUSD nor long USDJPY represents an "overcrowded" trade at the moment.
See the above video for technical considerations in EURUSD, USDJPY, and the USDOLLAR Index.
Read more: Is the USDOLLAR Index Attempting to Bottom? Levels to Watch
--- Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, please fill out this form