Technical Update - EURUSD and Dollar Index likely to be breaking deadlock shortly. GBPUSD correction probably not over Technical Update - EURUSD and Dollar Index likely to be breaking deadlock shortly. GBPUSD correction probably not over Technical Update - EURUSD and Dollar Index likely to be breaking deadlock shortly. GBPUSD correction probably not over

Technical Update - EURUSD and Dollar Index likely to be breaking deadlock shortly. GBPUSD correction probably not over

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  EURUSD bullish break of 1.0825 or bearish break below 1.0720?
Dollar Index key support at 103.22. Key resistance at 104.40
GBPUSD looking heavy indicating correction is not over just yet. Support at 1.2445 could be key


EURUSD yesterday tested the resistance at around 1.0825, spiking just a few cents above. Another break above is likely to fuel a rally with short-term potential to the 0.618 retracement of the current correction at 1.09 but with medium-term potential back to 1.10.

If EURUSD on the other hand is breaking below last week’s low at 1.0720 a spike down to the 0.618 retracement at 1.0665 could be seen. The rising 55 DMA will provide support however.

The RSI is still showing positive sentiment indicating the break out is likely to be to the upside

 

eurusd d 1312
Source all charts and data: Saxo Group

The Dollar Index is caught ranger bound between 104.40 and 103.22. Break out is needed for direction.
A bearish break out and the Dollar Index is resuming down trend with potential down to 102-101.62 support.

A break above 104.40 could see a swift rally to the 0.618 retracement at 105.23. The declining 55 DMA will however, provide overhead resistance limiting an uptrend.

A break above last week’s peak at 104.27 would be an early warning of a bullish break out.

However, RSXI is in negative sentiment with no divergence indicating the Dollar Index is more likely to break out bearish

dollarindex d 1312

GBPUSD is still in a correction phase. A correction that could continue to testing the 1.2445 support. A close below is likely to send GBPUSD aka “Cable” lower towards the 0.6518 retracement at 1.2323.

The rising 55 DMA will provide support however, limiting the downside potential. RSI is also still showing positive sentiment.

If GBPUSD is taking out Tuesday’s peak at 1.2616 the strong resistance at around 1.2745 is likely to be tested once again

gbpusd d 1312

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.