Talking Points:
- The US Dollar is pulling back after setting another fresh yearly[1] high yesterday morning. Prices have moved back to the Fibonacci level at 96.47, and we’ve seen a bit of short-term support build at prior resistance. The prior swing-low was set earlier this week at 96.17, and as long as price action[2] remains above this level, bullish strategies can remain attractive around the US Dollar[3].
- Pullbacks are showing across major currency pairs, with EUR/USD[4] showing the potential for short-term strength while GBP/USD[5] is catching a bounce on a Fibonacci retracement taken from the ‘Brexit move’ in the pair. AUD/USD[6] has run into a key zone of confluent Fibonacci support around .7200. This is the same area that turned around bearish advances twice in 2016, and we’re seeing support set in over the past 24 hours after this level came into play again.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[7] or the Euro[8] are available from the DailyFX Trading Guides page[9]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[10]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[11].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[12].
US Dollar Strength Begins to Pullback
The bullish theme in the US Dollar perched up to new highs yesterday morning around the open of the
