Despite today's weak session due to the US holiday, we can see that the US dollar continues to retreat against the fx majors.
In the case of EUR/USD, buyers continue to try to recover some of the recent declines, but is this enough to maintain the uptrend?
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In the 4 hour time frame, we can see that buyers regained control of the price after the euro retested this year's lows near 1.04.
EUR/USD, 4 hour time frame chart. Source: xStation
USDIDX - 4 hour time frame chart
On the US Dollar Index (USDIDX) chart, we can see that the buying force has been showing signs of slowing down recently, after sellers managed to regain control of the price near this year's highs.
At this point, we can see that the price has tested the Fibonacci levels at 61.8% and as long as the sellers are able to maintain control of the price below that zone, then we can expect a continuation of the bearish movement in the index, which would support the continuation of the bullish scenario on the EUR/USD pair.
USDIDX, Daily time frame chart. Source: xStation 5
During this session, AUD is leading the gains!
Source: currency-strength.com
Henrique Tomé, XTB Portugal
