The US dollar started today's session trying to regain some ground against major currency pairs, but over the course of the session it has been losing steam.
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Through the 1-hour chart we can see that over the past week, buyers have managed to break above the downtrend line which eventually triggered a rebound in buying strength.
However, the upward movement eventually slowed down and has since consolidated. According to technical analysis, it is possible to identify a bearish channel that can be used to argue for a continuation of the bullish movement.
Buyers have been regaining price control during today's session after the price tested the lower bound of the structure. In the event of a break above that zone, the bullish movement could extend over the next few times.
EUR/USD, 1 hour time frame chart. Source: xStation 5
US dollar Index (USDIDX)
Looking at the US Dollar Index, the 4-hour chart, we can see that there is still a possibility that the USD could lose some strength.
As with the EUR/USD, on the 4-hour chart it is possible to identify a small bullish channel that could be used as an argument for a continuation of the short-term bearish movement.
This bearish move could intensify further if sellers manage to break below the $93,686 mark which could mark the neckline zone of the possible double top.
USDIDX, 4 hours time frame chartt. Source: xStation 5
During this session, the EUR leads the gains during today's session
Source: currency-strength.com
Henrique Tomé, XTB Portugal
