DXY Index Eyes 2017 Low as EUR/USD Hits Three-year High

Talking Points:

– Breakthrough in coalition talks to form new German government send EUR/USD to its highest rate in three years.

– Bearish momentum in the DXY Index remains firm, now eyes a test of the 2017 low set on September 8 at 91.01.

Retail trader sentiment continues to suggest weakness among the major USD-pairs.

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Amid news that German Chancellor Angela Merkel would finally be able to cobble together a coalition government, the EUR/USD has found itself shaking off whatever political risk that it’s carried since the September elections. EUR/USD break above 1.2100 today signals not only a fresh high for 2018, but its highest exchange rate in three years.

To no surprise, given that the Euro is 57.6% of the DXY Index, the aggregate gauge of the US Dollar has been slammed lower today, taking out not only

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/top_fx_headlines/2018/01/12/DXY-Index-Eyes-2017-Low-as-EURUSD-Hits-Three-year-High.html?DFXfeeds=forex:fundamental:daily_briefing:daily_pieces:top_fx_headlines