Can the Dollar Draw from EURUSD, USDJPY to Return to 15 Month Highs?

Talking Points:

  • Dollar advance more of a drift than a committed charge
  • Bulls will need to depend on EURUSD and USDJPY to leverage more technical enthusiasm
  • Download our recently released fourth quarter forecast for the Dollar and majors here

Technical Forecast for US Dollar: Bearish

The US Dollar earned another swing higher this past session, saving the currency from sinking deeper into a broad October correction and potentially moving the currency into position to complete a head-and-shoulders position. On shorter term charts, the DXY index offers up a ‘stair step’ climb through the middle of the week that gook advantage of the congestion that developed around 95.00. That psychological figure happened to represent the midpoint of the September 21st to October 9th charge. As far as technical weight goes, this was not a particularly robust figure, but it gained influence due to the general market conditions. The retreat from the currency that preceded the bounce carried limited momentum. In contrast, the resistance in the 96.20-96.00 area has grown in notoriety as this past week’s turn has established a triple top. If a strong bid for the Dollar forms in the more liquid crosses,

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