US Dollar Talking Points:
The US Dollar[1] has inched lower over the past 24 hours as the Q4 pullback in the USD has run into support. That support was looked at in yesterday’s article[2] and was coming from a couple of different areas. The first of which is a bullish trendline that connects June and late-August swing lows. The other element of support emanates from April and May resistance, taken from around 98.33-98.50 in DXY. This zone of prices started to come into play last Friday and remains of issue ahead of the Wednesday US open.
US Dollar Eight-Hour Price Chart
Chart prepared by James Stanley[3]; US Dollar on Tradingview[4]
Reading between the lines, sellers were able to tip-toe down to a fresh low last night. But they weren’t able to take control of the matter and prices have pushed right back into this key zone on the chart. This leaves potential for either scenario of strength or weakness and as looked at in yesterday’s webinar, there’s a number of markets that can remain attractive for each[5].
EUR/USD Bounces From Bear Flag Support
This was looked at in yesterday’s morning article as EUR/USD[6] was pushing below the 1.1000 handle. But, as discussed in the webinar later in the day[7], there was a ‘nexus’ of confluence at this zone as a bearish trendline that held the highs in the pair from July into last week intersected with the support side of a bear flag formation. That support has since held but buyers have been yet again thwarted at the 1.1050 level on the chart. This can keep the door open for short-term range strategies, looking for a revisit of
