USDOLLAR Index at Risk of Near-Term Top
- USDOLLAR Index threatens uptrend from late-November pivot low.
- Watching post-ECB highs in EURUSD near 1.2455.
- See the 'high' importance events on the DailyFX Economic Calendar.
The broader USDOLLAR Index may have broken to fresh yearly highs last week after the stronger than expected November US labor market report, but there has been little follow through this week. Perhaps it could be due to developments in AUDUSD and USDJPY, where targets in favor of USD strength were recently achieved, setting up for a round of profit taking.
With year-end right around the corner and a strong, consistent run up in the greenback, the oversaturated futures market (specs continue to hold net-longs near an all-time notional high) could pave the way for some covering.
See the above video for technical considerations in EURUSD, AUDUSD, and NZDUSD.
--- Written by Christopher Vecchio, Currency Strategist
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