Dollar Uptrend Under Fire - ST Topping Potential Increasing
- EURUSD tests $1.1000, but obstacles remain before 'bullish.'
- AUDUSD takes a turn towards recent channel resistance.
The likelihood that the USDOLLAR Index is establishing a short-term top has jumped after recent price action. With a fairly empty economic calendar for today and the rest of this week, there doesn't seem to be a fundamental or event-driven catalyst for the greenback to look to. In absence of said influences, traders have disabused the USDOLLAR Index of its recent uptrend. Now, charts in the broad gauge, as well as other USD-pairs, are starting to show signs of stress in the relationships that technical indicators held with price during the recent rally. Technical evidence, it seems, is starting to pile up in favor of a short-term correction.
See the above video for technical considerations in EURUSD, AUDUSD, NZDUSD, USDJPY, and the USDOLLAR Index.
--- Written by Christopher Vecchio, Currency Strategist
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