Correction on the USD accelerates

Short-term positive sentiment towards the American Dollar continues. EURUSD is having some serious troubles after the buyers failed to break the 1.2080 resistance. Candle from the last week formed a pinball, which can be potentially a very negative sign here, especially that traders are following this signal in the current week and the new weekly candle is so far making lower lows and highs.

GBPUSD is doing a bit better because here, the price is closed inside the pennant formation, which is still bullish. Currently, we are aiming to test the lower line of this pattern.

Dollar Index reverses after the major sell signal, which we received at the end of the year. Reversal is not a surprise. It is a typical movement after the breakout of the support. Now we are testing it as the closest resistance. That creates a good situation for the short-term buyers but in the longer-term, the sentiment towards USD is still negative.

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