The US Dollar Index (DXY) ran into resistance yesterday around numerous peaks created in recent months, keeping it contained for the moment. The same can be said about the downside in EUR/USD as the all-important 11500 level comes back into play. USD/JPY still has a little room to go, but has resistance zones in view from which a reversal could develop.
Technical Highlights:
- USD Index (DXY) finds sellers at resistance
- EUR/USD 11500 support keeping it afloat
- USD/JPY running towards resistance zones
USD INDEX (DXY) FINDS SELLERS AT RESISTANCE
The US Dollar Index (DXY) rally is finding opposition at a series of peaks dating back to the spring. It didn’t post the most powerful yesterday off the mid-95s, but if it can’t soon trade on through look for weakness to set in. A breakout is likely to see the DXY trade to or better than the August high.
US DOLLAR INDEX (DXY) DAILY CHART (AT RESISTANCE)
EUR/USD 11500 SUPPORT KEEPING IT AFLOAT
EUR/USD is the big driver of the DXY, so naturally it is moving on reverse and instead of resistance it is at a much defined level of support just above 11500. The euro has bounced off support a half-dozen times since the end of May, making it a very key spot. A hold keeps it buoyed or better, while a break will be viewed as a catalyst for keeping the train rolling downhill towards the August low.
EUR/USD DAILY CHART (11500 SUPPORT HOLDING FOR NOW)
USD/JPY RUNNING TOWARDS RESISTANCE ZONES
USD/JPY hasn’t been on our radar much, but with big overhead resistance zones only a short distance away that could change very soon. The first zone is from around 11420-11474 and the second is located in the 11500s. A strong turnabout at one of these zones is likely to pique further interest and a retracement at the least. We’ll be discussing further in the days ahead…
USD/JPY DAILY CHART (RESISTANCE AHEAD)
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