As looked at in the last post the US Dollar is currently working on a doji for the month of May and the weakness that was widespread through March and the first three weeks of April has dissipated over the past month and change. USD/JPY has been a big part of that, following the pair's 140.00 test last month which has so far held at a higher-low. But - if looking for USD-strength, EUR/USD may make for a more compelling backdrop.
The pair has so far held a lower-high at the 1.1400 handle following last month's failed run at 1.1500. Notably, this also coincides with a bearish trendline, drawn from 2021 highs which came back into play last month to hold resistance for three consecutive weeks.
The lower high showing now further reinforces the view that a local top may be in-place on the pair.
If looking to work with USD-strength on the basis of a turn, EUR/USD looks like one of the more compelling major FX pairs, whereas markets like GBP/USD and USD/CAD seem situated more attractively for USD-weakness scenarios. - js
The pair has so far held a lower-high at the 1.1400 handle following last month's failed run at 1.1500. Notably, this also coincides with a bearish trendline, drawn from 2021 highs which came back into play last month to hold resistance for three consecutive weeks.
The lower high showing now further reinforces the view that a local top may be in-place on the pair.
If looking to work with USD-strength on the basis of a turn, EUR/USD looks like one of the more compelling major FX pairs, whereas markets like GBP/USD and USD/CAD seem situated more attractively for USD-weakness scenarios. - js
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.