Technical Update - Corrections in EURUSD and Dollar Index seem to be over. Resuming medium-term trends Technical Update - Corrections in EURUSD and Dollar Index seem to be over. Resuming medium-term trends Technical Update - Corrections in EURUSD and Dollar Index seem to be over. Resuming medium-term trends

Technical Update - Corrections in EURUSD and Dollar Index seem to be over. Resuming medium-term trends

Forex 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  EURUSD and the Dollar Index both turned around at the 0.786 retracement and now seem to be resuming their medium-term trends.
EURUSD could challenge April peak and key resistance at 1.1180
Dollar Index could test key support at 100.68


EURUSD closed back above 1.09 resistance. RSI closed back above 60 threshold meaning now back showing positive sentiment indicating likely higher EURUSD levels.
Similar to during the May sell-off that bounced from the 0.786 retracement at 1.0640 expect a correction from the 0.786 at 1.0997.

However, if EURUSD closes above the Cloud, and RSI is still above 60 showing positive sentiment, EURUSD is likely to test April peak around 1.1095.

Weekly RSI is indicating higher EURUSD level above April peak and a move to around the 200 weekly Moving Average and resistance at around 1.1180 should be expected.
However, a spike up to the 0.618 retracement and 1.382 projection of the June correction at around 1.1270 should not be ruled out.

For EURUSD to reverse this bullish a close below 1.0630 is needed.

Source all charts and data: Saxo Group

The Dollar Index correction reversed from the 0.786 retracement at 104.70 to be send back below 100 and 55 Moving Averages.
RSI is below 40 i.e., showing negative sentiment, The Dollar index could be testing the key strong support at around 100.68 shortly.

Expect a minor bounce from the 0.786 retracement at around 101.40

If the Dollar Index closes below 100.68, it has spiked below on several occasions without closing below, there is further down side potential. Next support at around 98.63 and 97.44.
If the Dollar Index closes above 104.62 the potential bearish scenario is demolished and an uptrend has been established.

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 is not intended to and does not change or expand on this. 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/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

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

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.