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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
USD Breakdown Slows: Can Buyers Swing a Pullback? EURUSD, GBPUSD

USD Breakdown Slows: Can Buyers Swing a Pullback? EURUSD, GBPUSD

James Stanley,
What's on this page

US Dollar, EURUSD, GBPUSD Price Analysis:

US Dollar Breakdown Tangles with a Big Level

We’ve just seen the rare occasion in which currency markets took at least some of the spotlight away from stocks. As the US Dollar broke down yesterday, a number of major pairs broke out and many markets are coming off of fresh yearly highs. EUR/USD and AUD/USD are two of the more popular areas that highlight that theme, but now that the US Dollar is perched down to a fresh low the natural next question is – what’s next?

The answer to that question is likely going to be dependent on the venue with which it’s being analyzed, as a continuation of USD strength may be a bit more difficult to imagine in EUR/USD or AUD/USD as bulls have continued to press each market with a minimum of pullback as big resistance zones have come into play.

USD Forecast
USD Forecast
Recommended by James Stanley
Download our Q3 USD Forecast
Get My Guide

At this point, the USD sell-off appears to be slowing after dipping below the 95.00 level on DXY. This level had previously helped to set the low for the currency in early-2019 and that yearly low held until the brief incursion in March. Now with this key price back in-play, will bears be able to generate enough weakness to constitute a lasting break?

US Dollar Weekly Price Chart

US Dollar Weekly Price Chart

Chart prepared by James Stanley; USD, DXY on Tradingview

EUR/USD Breaks Out to Fresh Yearly Highs – Finds Fibonacci Resistance

The most popular USD-pair of EUR/USD had a big breakout yesterday, helped along by some fundamental themes in Europe. This helped EUR/USD push up to a fresh yearly-high, taking out a number of resistance levels along the way. But, as of this morning, another resistance level has come into the equation and this resides at 1.1597, as the 50% marker of the 2018-2020 major move. This was highlighted earlier today by Ms. Tammy Da Costa in the article, Euro Price Analysis: EUR/USD Breaks Above Key Level of Prior Resistance.

Building Confidence in Trading
Building Confidence in Trading
Recommended by James Stanley
Building Confidence in Trading
Get My Guide

With the pair stretched and holding around that fresh yearly high – the stage is set: If the USD does pose a deeper breakdown, EUR/USD can possibly push up towards the 1.1700 handle. Outside of that, a pullback in the USD sell-off could allow for a reversal-type-of-theme in EUR/USD from this resistance level.

EUR/USD Daily Price Chart

EURUSD Daily Price Chart

Chart prepared by James Stanley; EUR/USD on Tradingview

GBP/USD Pulls Back, Finds Support at Prior Resistance

Similarly, GBP/USD has had a bullish outlay for much of Q3, driving up to a fresh monthly high to kick off this week. But, unlike the breakout in EUR/USD that just continued to run even whilst overbought, GBP/USD pulled back, found support at prior resistance, and has since began to move-higher. This may be a more attractive candidate for short-USD continuation scenarios given the potential for bullish trend continuation.

GBP/USD Four-Hour Price Chart

GBPUSD Four Hour Price Chart

Chart prepared by James Stanley; GBP/USD on Tradingview

--- Written by James Stanley, Strategist for

Contact and follow James on Twitter: @JStanleyFX

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