The US dollar's previous bullish momentum met monthly resistance at the all-time high price of 114.750. Since then price action has been making lower lows and lower highs followed by a massive sell-off toward the support zone around 105.300.
However, there is a rejection of lower prices at this support zone. This hypothesis can be validated by the double bottom chart pattern and 3 consecutive bullish candles. A possible bullish reversal is likely to follow toward the upper trendline.
The US dollar is likely to strengthen due to the upward pressure of the dollar index. Consequently, major currency pairs are likely to be affected.
Candidates for shorting opportunities include EURUSD, GBPUSD, and AUDUSD. Long trades can be executed on the following currency pairs: USDCHF, USDJPY, and USDZAR.
Keep away from USDCAD and other CAD pairs due to the ongoing trade tensions on oil price caps. CAD is highly correlated with oil prices.
However, there is a rejection of lower prices at this support zone. This hypothesis can be validated by the double bottom chart pattern and 3 consecutive bullish candles. A possible bullish reversal is likely to follow toward the upper trendline.
The US dollar is likely to strengthen due to the upward pressure of the dollar index. Consequently, major currency pairs are likely to be affected.
Candidates for shorting opportunities include EURUSD, GBPUSD, and AUDUSD. Long trades can be executed on the following currency pairs: USDCHF, USDJPY, and USDZAR.
Keep away from USDCAD and other CAD pairs due to the ongoing trade tensions on oil price caps. CAD is highly correlated with oil prices.