Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Potential for Top in USDOLLAR After Triangle False Breakout

Potential for Top in USDOLLAR After Triangle False Breakout

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- USDOLLAR made new highs this week, but has reversed breakout.

- Failure under daily 34-EMA - support since July - would confirm.

- See the April forex seasonality report.

Although the USDOLLAR Index hit fresh yearly highs this week, it's now vulnerable to setting a significant top if it breaks current levels. The daily 34-EMA has been the backbone of trend support dating back to last July (having most recently served as support on the post-March FOMC meeting selling), and a loss of this mean reverting level, in context of the recent return to the triangle range, would indicate strong potential for lower prices in USD-pairs over the coming days and weeks.

See the above video for technical considerations in EURUSD, GBPUSD, USDJPY, USDCAD, and USOIL.

Read more: Trade Setups in EUR-crosses Ahead of ECB Meeting

--- 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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES