Video: USDollar Marks a Key Trend Break But Will EURUSD Feed a Turn?
• USDollar has closed below the floor of a nine-month rising trend channel
• Despite the Index's progress on the charts, liquid majors (particularly EURUSD) haven't marked breaks
• To better evaluate the Dollar's bearings, we look at technicals and fundamentals across the board
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The Dow Jones FXCM Dollar Index (ticker = USDollar) has marked a high-profile bearish break of its nine-month rising trend channel. Is this clearance for an immediate plunge for the benchmark currency, or will we see it struggle and perhaps signal a quick reversal on a 'false break'? Evaluating the currency's next move, we need to assess its position across its most liquid counterparts and the fundamentals that would feed fuel to the fire. Where USDollar has seen a clean break, the world's most liquid currency pair - EURUSD - is still some distance from its critical resistance at 1.1000. Furthermore, the slump from the Greenback wasn't spurred by decisive event risk and the general trend is still supportive, but there are important updates ahead. We look at the Dollar more critically in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.