EUR/USD, DXY, USD/JPY & More

  


EUR/USD volatility is making getting a clear handle on anything a bit tricky, as the slow grind since the low since the fall has an upward trend intact, but within the context of a broader downtrend. This inclines me to believe it is corrective and that eventually a breakdown below the multi-month trend-line will materialize. But it may not come before we see some more backing and filling to the upside. Things are a bit tricky at the moment, so taking it slow. It seems, though, a move towards the 10900 area could be in store in the not-too-distant future.

EUR/USD Daily Chart (choppy, watch t-line)

EUR/USD daily chart (choppy, watch t-line)

EUR/USD Chart by TradingView

The US Dollar Index (DXY), largely driven by the Euro, is up against trend-line resistance that could be part of a falling wedge formation. If this is to be the case, then at some point now or a little later on (next couple of weeks) we should see a surge higher develop. For now, respecting the downtrend line. A break above the trend-line and 97.82 is needed to get the chart tilted to the upside.

USD Forecast

USD Forecast

Recommended by Paul Robinson

Q1 US Dollar Forecast

US Dollar Index (DXY) Daily Chart (falling wedge developing, t-line resistance)

US Dollar Index (DXY) daily chart, falling wedge developing, t-line resistance

US Dollar Index (DXY) Chart by TradingView

USD/JPY broke above the October 2018 trend-line and late-year peaks around the 10972-line, but are already in a battle with another level of resistance. The trend-line from 2015 is running down over today’s high. This puts a bit of a damper on seeing more strength, but the general backdrop doesn’t necessarily make this a great spot to be a bear either. It appears likely that we see a bit of back-and-forth between levels before a resolution in direction.

JPY Forecast

JPY Forecast

Recommended by Paul Robinson

Q1 Japanese Yen Forecast

USD/JPY Daily Chart (at 2015 trend-line)

USD/JPY daily chart, at 2015 trend-line

USD/JPY Chart by TradingView

For all the charts we looked at, check out the video above…

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—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX





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