US Dollar, EUR/USD, GBP/USD, AUD/USD Talking Points:
- The US Dollar continues to hang[1] around longer-term support.
- EUR/USD[2] remains in a range, and range continuation in EUR[3]/USD[4] could be attractive for those looking at long-USD scenarios.
- GBP/USD[5] has a bullish backdrop as a series of higher-lows goes along with a re-test of a key spot of resistance. Can bulls break through this time?
- The analysis contained in article relies on price action[6] and chart formations[7]. To learn more about price action or chart patterns, check out our DailyFX Education[8] section.
The US Dollar[9] is continuing to dig into longer-term support; and at this point, prices in USD are riding along a trendline projection with a batch of confluent Fibonacci levels sitting just below.
This is the same trendline projection that had come into play around the September open, helping to arrest a six-month-sell-off in USD before a bounce showed up in October. That bounce was short-lived, however, and as election results got priced into FX markets, the US Dollar went right back into drop mode and has re-engaged with this bearish trendline.
Accordingly – a number of major pairs are at resistance to go along with this USD support test, including EUR/USD, GBP[10]/USD and AUD/USD[11], all testing big levels on their respective charts.
US Dollar Monthly Price Chart: Digging into Support
Chart prepared by James Stanley[12]; USD, DXY on Tradingview[13]
EUR/USD Remains in Range – Can Buyers Push Through
Of USD major pairs that may be attractive for USD-strength, whether that’s a mild bounce or the start of a
