Euro rebounds against USD

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.

Technical Analysis - 1 hour time frame chart

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