EURUSD, GBPUSD, US Dollar Talking Points:
- The US Dollar is spiking-higher this morning[1], and this has led to support tests in both EUR/USD[2] and GBP/USD[3] as both pairs are threatening fresh bearish breakouts. But are these scenarios bear traps? Tomorrow marks the start of the Good Friday and Easter holidays: European markets will remain closed until next Tuesday and US markets will shut tomorrow, making this as a suspicious time for fresh breakouts in themes that have been brewing for the past few months.
- GBP/USD is holding support in a descending triangle formation, but the plot is thicker in EUR/USD where the pair has pushed below a bullish channel that had made a bear flag formation[4]. Price action[5] is testing the 1.1250 level, and longer-term range support is approximately 40 pips below current prices, making for challenging risk-reward ratios if using the recent swing-high for stop placement, approximately 80 pips away from current spot prices in EUR/USD.
- DailyFX Forecasts are published on a variety of currencies such as the US Dollar[6] or the Euro[7]and are available from the DailyFX Trading Guides page[8]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[9]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[10].
Do you want to see how retail traders are currently trading the US Dollar[11]? Check out our IG Client Sentiment Indicator[12].
