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
US Dollar Breaking – GBP/USD, EUR/USD Charts for Next Week & More

US Dollar Breaking – GBP/USD, EUR/USD Charts for Next Week & More

Paul Robinson, Strategist

The US Dollar Index (DXY) is flirting with a significant breakdown from the channel it has been stuck in since last year. Further adding to the mix here is that volatility has been extremely suppressed and this could be a sign that this about to change as we head towards a calendar flip. The initial bias with a little bit more weakness to confirm, will be lower, but it would be unsurprising if it turned out to be a fake-break. Nevertheless, it is a good sign that a once steady technical structure may be no more.

US Dollar Index (DXY) Weekly Chart (Channel on verge of snapping)

US Dollar Index (DXY) Weekly Chart (Channel on verge of snapping)

US Dollar Index Chart by TradingView

GBP/USD put on a show last night following the exit polls from the UK general election, with it rallying well over 3 big figures at one point. It has since eased off a bit and could be exhausted in the near-term with ‘buy-the-rumor’ sell the news risk rising. With that in mind, taking a somewhat neutral stance here to see how things settle out. There is a trend-line running over from September 2018 that the overnight high pretty much tagged to a “T”, keep an eye on its influence going forward.

GBP/USD Daily Chart (burst higher may have Cable exhausted)

GBP/USD daily chart, burst higher may have Cable exhausted

GBP/USD Chart by TradingView

EUR/USD is trying to make a break for it, and if the DXY is going to make good on its breakdown then the Euro will need to follow through. Right now, price is above the 200-day and September 2018 trend-line, but there needs to be a rally with conviction beyond say the 11300/11400-area before a trend change can grow legs. For now watching to see how this attempt to run higher progresses before drawing any further conclusions in either direction.

EUR/USD Daily Chart (climbing, but still has work to do)

EUR/USD daily chart, climbing, but still has work to do

EUR/USD Chart by TradingView

For the full set of technical details and charts, check out the video above…

Resources for Index & Commodity Traders

Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, and trading guides to help you improve trading performance.

We also have a series of guides for those looking to trade specific markets, such as the S&P 500, Dow, DAX, gold, silver, crude oil, and copper.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES