US Dollar, EUR/USD, USD/CAD Talking Points:
- The US Dollar set a fresh yearly high yesterday[1], breaking above an ascending triangle pattern that’s been brewing since Q4 of last year. Momentum began to wane above that resistance level, however, and this has led to almost 24 hours of posturing from bulls. But, on a shorter-term basis, pullbacks from resistance have grown shallower, leading into another possible bullish breakout setup.
- Yesterday’s US Dollar[2] strength was noticeable against many major pairs, but EUR/USD[3] has thus far respected the five-month-old support structure. If USD[4] cannot continue to push-higher, EUR/USD may be setting up for a nasty bear trap. Commodity currencies have been especially vulnerable to this recent raft of USD-strength, and USD/CAD[5] is sitting very near three-month-highs with a Bank of Canada rate decision set to take place later this morning.
- 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 Gold prices[11]? Check out our IG Client Sentiment Indicator[12].
US Dollar Sets Fresh Yearly High – and Then Stalls
After five months of resistance at the 97.70 level, the US Dollar has finally perched up to a fresh annual
