Last week, the euro against the US dollar tried to break above the resistance zone marked at 1.06398 but failed. The risk-off sentiment in the markets ended up boosting the US dollar again, causing the euro to come under pressure once more.
At this moment, we can see that the price is once again near the support zone marked at 1.04770. This support zone has played a significant role in maintaining buying strength in this region, but will it have the same impact this time?
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4 hours time frame chart. Source: xStation 5
On the chart of the US dollar index, we can see that the price has broken and retested the upper limit of the range. This is a critical zone, as it could lead to further appreciation of the dollar if the price remains above the range that has already been broken to the upside.
Daily time frame chart. Source: xStation 5
On the other hand, within the US dollar index, we can observe mixed signals regarding what we can anticipate concerning the US dollar. The price has once again tested the upper boundary of the range that was previously broken and is currently situated in a critical zone for determining the next major movement of the dollar in relation to the major currencies.
Currency Strength. Source: currency-strength.com
Henrique Tomé,Analyst Portugal
