- The US Dollar is dropping after putting in a test of a familiar area of resistance, taken from the same zone that held the highs through June and July around the 95.50 level. This comes after a strong bounce from support began last week, helping to soften an August reversal that quickly saw USD[2] lose the entirety of the currency’s earlier-month gains.
- GBP/USD[3] strength has been unable to hold support and sellers quickly reversed last week’s bullish breakout in the pair; indicating that any bigger-picture reversals of the four-month bearish trend in GBP/USD will need to be coupled with a bigger-picture breakdown in the US Dollar. EUR/USD[4], meanwhile, has seen sellers come back as well, although losses were contained after prices bounced from a similar support area from the last few months, taken from just above the 1.1500 psychological level.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10].
US Dollar Falls After Failed Test of June, July Resistance Around 95.50
Last week’s support bounce in the US Dollar has continued to hold[11] into early-September trade,
