US Dollar, GBP/USD Talking Points:
US Dollar Back to Resistance
The US Dollar is back at the 98.00 level on DXY[1] and this is the fourth such instance over the past eight days. It appears as though it’s a simple matter of time before buyers able to push up to fresh three-week-highs and given the higher-low support that’s shown over the past couple of days this keeps that theme alive with an ascending triangle formation. The price of 98.00 came in as the swing-high around FOMC[2] and similarly came in to set the daily high on Tuesday morning as well as last night.
US Dollar Two-Hour Price Chart
Chart prepared by James Stanley[3]; US Dollar on Tradingview[4]
US Dollar: Deeper Retracement in the Q4 Reversal?
The big item from last month was the bearish reversal in the US Dollar[5]. The currency came into Q4 with a full head of steam, setting a fresh two-year-high on the first trading day of the quarter. But, the longer-term formation was showing as a rising wedge, which will often be approached with the aim of bearish reversals and that was the side looked at in the Q4 Technical Forecast on the US Dollar[6]. That scenario played out through October and the US Dollar came into the month of November around two-month-lows[7]. But so far this week USD[8] bears have remained at bay.
This morning’s short-term bullish formation comes at odds with the slightly longer-term bearish backdrop. This highlights the potential for a deeper retracement in that bearish USD theme, focusing on lower-high resistance potential around 98.20 or the 98.33-98.50 zone.
US Dollar Four-Hour Price Chart
