Dollar remains in a precarious spot so far on the session

Technical Analysis

The dollar looks vulnerable to a further drop

The market is largely carrying on with the same theme from trading yesterday and in the currencies space, that is seeing the dollar falter once again today.

That is pushing dollar pairs to near its recent extremes with EUR/USD testing a break above 1.1900 again – a level that has capped upside over the past three weeks.

Elsewhere, cable is testing recent highs at around 1.3170-86 while we are seeing USD/CHF post fresh five-year lows and USD/CAD slips to its lowest levels since January, under 1.3200.

Of note, the dollar index charts are also telling that the greenback could be facing more pain to come in the sessions ahead this week:

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The Bloomberg dollar index chart is testing lows last seen since June 2018 and a firm break below the recent lows could spell more danger for the greenback, considering there is little in the way from a technical perspective to stop the drop.

The same can be said for the DXY – the main dollar index chart – as well, which is hitting its lowest levels since May 2018 today.

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