Today's session marks the new trading week but also the new month. During the month of April the U.S dollar (USD) recorded the worst performance throughout this year. The DXY index has dropped more than 2%.
If we look at the 4 hours time frame chart on EUR/USD, we can see that the euro has been maintaining the bullish momentum while the u.s dollar continues to lose strength.
Despite the bearish pressures at the end of last week, today's session is once again highlighted by the strength of the euro against the USD.
As the US dollar continues to depreciate, the euro regains ground, even after breaking below the upside trendline.
The next short-term obstacle will be the 50 period EMA (blue line). If we see a clear break above that, then the bullish momentum may extend towards the key level (1.21).
Eur/usd, 4 hours time frame chart. Source: xStation 5
Taking a look at the US dollar index (USDIDX), we can see that the month of April (the rectangle) was very negative for the USD. The last 2 sessions were positive for the USD, after the price tested the upside trendline. However, the bearish pressures remain todays.
USDIDX, Daily (D1) time frame chart. Source: xStation 5
GBP is the best performing major currencies while CHF lag the most
Henrique Tomé, XTB Portugal
This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.