EUR/USD, GBP/USD, DXY – USD Charts For Next Week
USD Technical Outlook:
- US Dollar Index (DXY) rangebound, will eventually break
- EUR/USD & GBP/USD will be at the center of the breakout
The US Dollar Index (DXY) continues to trade within the confines of a range, which is making the immediate moment difficult for many traders. Times like this require patience if looking for directional moves. If flipping within the range then this is fertile ground. It’s all a turn of perspective. The top of the range clocks in at 100.93 while the bottom of the range rings in at 98.27, just below the slightly rising 200-day MA.
US Dollar Index (DXY) Daily Chart (range will eventually break)
Again we will talk about the massive long-term trend-line in EUR/USD. Taking the Euro back before its existence and building it from its constituents gives you price action back to when currencies began to float freely in the 1970s. There is a trend-line from 1985 passing under the 2000 low and more recently the March low. This makes the March low of 10635 one of the biggest levels in all of FX, and financial markets for that matter. A break below should have a larger swing lower in play, but until it breaks it should continue to be respected as support. The lack of buying at the threshold, though, is further increasing the likelihood that trust in support is wearing thin.
EUR/USD Daily Chart (weak at major support)
GBP/USD, like other pairs, has been bound up by directionless price action. Overall it is drifting lower at the moment, but should start to light up a bit here soon once FX starts to move again. The big level to watch on a rally higher is the 200-day which has been a stopper on two recent attempts to rally. Looking lower minor support clocks in at 12163.
GBP/USD Daily Chart (edging lower at the moment)
For all the charts we looked at, check out the video above…
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---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.