Does USDollar Resistance Translate to EURUSD, USDJPY, USDCHF?
• USDollar has traded in a narrowing range for the past six months, held back by 12-year highs
• Does a major technical boundary on an index translate to a curb on all of the currency's pairings?
There is heavy resistance above for the US Dollar. From the Dow Jones FXCM Dollar Index, a prominent wedge and the 12-year highs set in March / April lay present a strong ceiling for the aggregate reading of the individual currency's value. Yet, how strong is that technical hurdle? Does the makeup of the currency index (the trade-weighted ICE Dollar Index versus equally-weighted USDollar Index) alter the influence of technical importance? Does the resistance we see on these derivatives translate to solid technicals on the individual pairings of the Dollar-based majors? In today's Strategy Video, we discuss whether technicals on currencies translate to technicals on currency pairs and how it can influence our trading.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.