The United States Dollar Bounces
Published on: 09/18/18 10:20 AM
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Category: Currency, Forex, Latest News, Market, Trade, Trading, US News, World News
The month began with a two week trend that pushed the currency lower
The two week bullish jump in the
EUR/USD is pulling back after setting a new high for August. The month began with a two week trend that pushed the currency lower due to the fears of the situation in Turkey. The Lira weakness began showing once the Turkish markets were online. The Euro is giving back the previous bullish move. This is adding to the volatility to the politics in Italy as a request is expected from the Italian government for anther QE round in support of the prices for Italian bonds.
The response for the second resistance area of the drop in the EUR/USD is heading into the week. This starts with the 1.1709 Fibonacci level and goes to the 1.1750 psychological level. This compromises the resistance zone that kept the pair high during the last two weeks of July. Traders can expect the support to be at the prior resistance before the trade will make a higher move. The focus is on the 1,1750 resistance. The doors to the pair continuing as bullish for the long term will open from a topside break.
Volatile summer for the USD
The United States dollar has been volatile for the summer price action. Over the last two weeks, the pair was under fire from the four month bullish trend. The support appeared unable to hold the deadlines due to the key levels pushed through by sellers during the last two weeks of August. The weakness in the
United States dollar appears to be distributed evenly and shows prominently against the Euro. Prior support has been bounced up by the United States dollar as the selling pressure is beginning to show. The door for bearish, short term themes may be open for the United States dollar.

Chart owned/prepared by James Stanley
Yesterday, a spinning top formation was produced by the Daily Chart for the United States dollar. This signals indecision and usually shows close to the bottom or top of a move. This can cause a morning star formation. The candle today should close above the level of $95.00. This completes the dual pronged formation. This may make the bullish continuation theme in the United States dollar appear more attractive regarding the scenario for the EUR/USD. After the bearish trend lasting for four months, there is some support for the GBP/USD.
Conclusion
Due to the support that became apparent two weeks previously, the prices have worked higher and the trend built below the price action may combine with a bearish trend line for the longer term. This will produce a symmetrical wedge formation indicating the digestion caused by a big directional move. A bearish light is being used to look at this setup with prices holding at resistance prior to a break in the trend line support.