Talking Points:
- EURUSD, GBPUSD slide back from recent highs.
- USDOLLAR Index still in counter-trend, bearish condition.
- See the May forex seasonality report.
Despite a rebound that's materialized the past 24-hours, it's still too early to call a bottom in the USDOLLAR Index. As EURUSD puts in a truncated top by failing to reach its channel resistance, GBPUSD has recently fallen back from a former zone of support/resistance dating back to November. While the makings of a turn in varius USD-pairs are starting to take shape, at this point in time there's not enough technical evidence to make that call.
See the above video for what conditions the USDOLLAR Index needs to meet before a bottom can be more confidently called, and for technical considerations in EURUSD, GBPUSD, and USDJPY.
Read more: USDOLLAR Index Losses May Have Further to Run
--- Written by Christopher Vecchio, Currency Strategist
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