As expected, USD gives back recent Gains

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Published: Jun 28, 2019, 10:04 UTC

As mentioned yesterday, correction on the American Dollar is coming to an end. Right on time, as today we are fighting for a weekly candle (and monthly one!), so in other words, we are about to provide the starting sentiment for the beginning of the next week (and month).

As expected, USD gives back recent gains

Apparently this one will be negative for the USD and we will be able to come back to the main trend seen throughout the June.

Dollar Index successfully defended the long-term up trendline as a closest resistance. That is a conformation of the sell signal, which was triggered, when the price broke this line on the 21^st of June. I expect the price to drop towards the support on the 94.9

EURUSD successfully defended the neckline of the Inverse Head and Shoulders formation and the horizontal support on the 1.134. That confirms the buy signal from the 21^st of June, which was triggered during the bullish breakout. You see how it all works out together?

Similar situation is happening on the USDJPY. Here, the price tested the lower line of the symmetric triangle and bounced from it creating a daily candle with a long head. Today, the price is creating a candle with a large bearish body, which shows us that traders agreed on the direction. The sell signal is ON.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

Tomasz Wiśniewskicontributor

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.