Dollar Extends Rally and Breaks Through On EURUSD, GBPUSD and USDJPY
•A 'tentative' Dollar break was given a serious upgrade with the return of liquidity Tuesday
• The seventh USD rally in 8 trading days was furthered by risk aversion and round of rate-supporting data
• While the hurdle for steady Greenback gains is high, it is much higher for the tentative SPX retreat
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With the return of liquidity, the Dollar intensified its bullish drive through the past week. Posting its seventh rally in eight trading days, the currency is well on its way to revisiting the multi-year highs set six weeks ago. In the meantime, we have also cleared major technical levels for some of the most liquid FX pairs. EURUSD moved beyond 1.1000 and further slipped below its 50-day moving average. GBPUSD dropped back below its the level that stood as hard-fought resistance for months. And, USDJPY blew away months of congestion with the biggest rally in months to break 122 on the way to seven year highs. With the proper fundamental support, the Dollar can keep its bearings, but its progress will develop differently according to certain conditions. We focus on the Dollar and risk trends in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.