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Technical Update - EURUSD and GBPUSD selling pressure coming back. Dollar Index on the rise

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • EURUSD likely resuming down trend with potential to 1.07-1.0660
  • GBPUSD could drop as low as 1.25-1.24.
  • Dollar Index eyeing 1.0556 level
  • Keep an eye on key levels for reversals
EURUSD got rejected at the 100 daily Moving Average just a few pips below the 0.618 retracement at 1.0883. The downtrend is likely to resume with a downside potential to 1.07–1.0660 supports.

RSI is still showing negative sentiment with no divergence supporting the bearish view. To reverse to an uptrend, a daily close above 1.0885 is needed
eurusd d 0804
Source all charts and data: Saxo Group
GBPUSD spiked just a few pips above the 0.382 retracement at 1.2675 only to close below, and below both the 55 and 100 Moving Averages.

The strength indicator RSI is still showing negative sentiment with no divergence supporting the bearish view where GBPUSD is likely to test 1.25, possibly lower.
A break below GBP 1.25 could push GBPUSD towards 1.24.

For GBPUSD to reverse this bearish scenario and unfold, a close above 1.2685 is necessary
gbpusd d 0804
The Dollar Index found support at the 55 daily Moving Average, then got rejected at the 0.618 retracement at 104.40.
However, the underlying sentiment is bullish with the 21, 55, and 200 Moving Averages all rising.

The strength indicator RSI is supporting the bullish view where the Index is likely to take out last week’s peak at 104.84 and push on to 105.56–105.85


A daily close below 103.68 will demolish this bullish scenario

dollar d 0804

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