USD Major Decision Zone
|Have the bulls taken EURUSD too far? Note: the second chart shows how the euro is actually close to all-time highs vs. a basket of currencies not including the US dollar. With DXY being primarily weighted by the US Dollar this key level will be crucial in gauging dollar strength in the near term. EURUSD successfully rejected the zone of 1.18-1.19 which has a monthly trendline as well as a 61.8 fibonacci
retracement from the highs in 2018.
Other key zones for gauging dollar strength this week:
- USDJPY support at 105.00
- USDCAD support at 1.34
- AUDUSD resistance at 0.7130 (61.8 retracement)
If we see the USD continue to weaken this will help push up the precious metals even further, however, the structural zones in the market this week definitely have enough substance to rationalize some USD strength from here.
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