- The US Dollar has continued to gain, continuing last week’s move of strength to tally a 2% move off of last Tuesday’s lows. DXY is now testing a key area of resistance around the 2017 swing-low, and the potential exists for a deeper move of USD-strength as we approach rate decisions out of Europe and Japan.
- The big question around the US Dollar is whether a short-term spate of strength might be able to turn into anything more. The down-trend in the Dollar is now more than a year-old, and there’s a case to be made for a short-squeeze scenario after the Greenback spent most of Q1 dwindling around three-year lows.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator.
US Dollar Rallies to Fresh Three-Month Highs
US Dollar strength has continued, and the Greenback is now up by 2% from last Tuesday’s low. Considering that this is a non-levered currency, that’s a respectable move in a short period of time, and the US Dollar currently finds itself in a key zone of resistance that we looked at yesterday. This resistance zone is taken from a batch of swing-highs in early-March up to the 2017 swing-low at 91.01. DXY moved into this