Technical Update - EURUSD, GBPUSD and Dollar Index broke key levels. Where to next? Technical Update - EURUSD, GBPUSD and Dollar Index broke key levels. Where to next? Technical Update - EURUSD, GBPUSD and Dollar Index broke key levels. Where to next?

Technical Update - EURUSD, GBPUSD and Dollar Index broke key levels. Where to next?

Forex 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  EURUSD likely to test 1.0950 resistance
GBPUSD minor resistance at 1.2445 but could move to 1.27
Dollar Index could drop to 103

EURUSD broke yesterday resistance at 1.0762 with a bang. Closing above the 1.0762 is confirming the short-term uptrend.
Trading above the 100 and DMAs there is no resistance until around 1.0945 close to the 0.618 retracement at 1.0956.
One should expect a couple of days with minor setback before testing 1.0945 resistance level

Positive sentiment on RSI and no divergence is indicating higher levels in EURUSD

For EURUSD to reverse the uptrend a close below 1.0655 is needed

Source all charts and data: Saxo Group

GBPUSD yesterday broke and closed above key resistance at around 1.2445. Minor resistance at around 1.2546 but with the Positive sentiment on RSI and no divergence a bullish move to the 0.618 retracement at 1.2720 and the strong resistance at around 1.2746 is in the cards
A minor setback down to around 1.24 could be seen but uptrend is in place short-term

To reverse the uptrend a close below 1.2185 is needed
The Dollar Index drop straight through the 105.34 level and the support at around 104.39 to the 0.382 retracement at 104.06 and the 100 DMA
Minor rebound should be expected but the Dollar Index could be hit by another wave of selling down to 103 area. Before finding solid ground.

Negative sentiment on RSI is supporting the short-term bearish scenario
A move back above 105.34 will demolish the bearish picture

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