Talking Points
- US Dollar made new highs this week, but has reversed breakout.
- Failure under daily 34-EMA - support since July - would confirm.
Although the US DOLLAR Index hit fresh yearly highs this week, it's now vulnerable to setting a significant top if it breaks current levels. The daily 34-EMA has been the backbone of trend support dating back to last July (having most recently served as support on the post-March FOMC meeting selling), and a loss of this mean reverting level, in context of the recent return to the triangle range, would indicate strong potential for lower prices in USD-pairs over the coming days and weeks.
See the above video for technical considerations in EUR/USD, GBP/USD, USD/JPY, USD/CAD, and Oil.
--- Written by Christopher Vecchio, Currency Strategist