US Dollar, EUR/USD, USD/CAD Price Action Talking Points
- USD[1] – has pulled back from fresh three-year-highs set last week.
- EUR/USD[2] threatening a deeper reversal as an ascending triangle has built, short-term.
- USD/CAD[3] buyers back to the table – USD/CAD[4] price action testing key resistance.
US Dollar Pulls Back After Fresh Three-Year-Highs
It’s been a busy year so far in the US Dollar[5]: After the currency put in a pronounced bearish reversal in Q4 of last year, the USD came into 2020 trade grasping for support at a key Fibonacci level. After the first few days of the New Year brought in a series of higher-lows, an ascending triangle had built, opening the door for bullish breakout potential in the USD[6].
That further priced-through[7] for the next few weeks, with the US Dollar catching a downdraft around the January FOMC rate decision[8]. At that meeting, the Fed didn’t really tip their hand towards any future rate moves, instead trying to remain flexible while communicating a tone of stability. But that only lasted into the end of that week as the Greenback was ready to go into launch mode after the February open, and that theme ran very loudly for the first few weeks of the month as the US Dollar jumped up to a fresh three-year-high, erasing the entirety of the Q4 sell-off and making a fast approach towards the 100.00 level in DXY.
Friday brought a pullback and yesterday a show of support. That support has held through the Thursday opens in Asia and Europe, and ahead of the US equity open, support continues to contain the lows.
US Dollar Daily Price Chart
