Talking Points:
- The US Dollar[1] is breaking-down to fresh two-month lows and EUR/USD[2] appears to be on the verge of a bullish breakout to fresh two-month highs. Both charts are testing through key areas at the moment, and with six-and-a-half trading days until the end of Q3, it appears as though markets are ready to push fresh themes in these major FX markets.
- The big question here is whether this helps Q4 to re-engage the bearish trend that dominated the US Dollar’s price action for much of 2017 and the first quarter of 2018. Q2 brought two months of strength to the Greenback and somewhat of a respite in that oversold move. But as we’ve seen in Q3, Dollar bulls have continually failed to push-forward despite a seemingly friendly backdrop for doing so; and this has helped the Dollar to breakdown as we near the open of Q4 and the end of what’s been a rocky 2018 for USD[3].
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
US Dollar: Descending Wedge Breaks, Dollar Drives to Fresh Two-Month Lows
The US Dollar is on the move this
