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Correction On The USD Comes To An End

Tomasz Wiśniewski

First example is the USDCHF, where the price reversed to test the long-term up trendline as a newest resistance, together with the horizontal line of 0.973. On Friday, USDCHF created a shooting star on the daily chart, which can be an invitation to go south. Currently, the price is creating a flag and the sell signal, will be triggered, when the price will break its lower line.

Similar setup can be found on the USDCAD, where we also had a pullback testing recent supports as closest resistances. The small difference is that here, the price created a shooting star on Thursday, not Friday. Currently, we are below three major resistances and as long as it stays this way, we do have a sell signal.

Those two setups are rather negative for the USD. Now, time for a one, which seems friendly for the American Dollar – EURUSD. Here, the price created a wedge in a downtrend and is currently close to its lower line. It seems that we also had a false breakout above the 1,12 and the major down trendline. Those factors are promoting a further decline, so in consequence – the strengthening of the USD.

This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory

This article was originally posted on FX Empire

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