There Is Another Drop In The United States Dollar

Published on: 09/19/18 9:09 AM

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Category: Currency, Forex, Market, Trade, Trading, US News, World News

United States dollar has dropped


The United States dollar has dropped below the bullish line that has been supporting the process for more than two months. The lows for August are approximately $94.50. The EUR/USD appears to recovered for all of the losses in August. The EUR/USD non-completed monthly bar is in a hammer formation. This is often a bullish reversal after a fresh low due to seller capitulation. The second half of August was strong for the EUR/USD. An element of bearish quality is maintained by the AUD/USD and GBP/USD on the charts. The forex markets can show the contrasting price as the source for the strength of the USD.

The two week descent is continued by the United States dollar after the annual high in August. The USD is showing a quick retracement and the price handle on the DXY is roughly $95. This is not the first time support has been seen due to the similarities of the show in August. At that time, another wave of selling impacted the Euro due to the single currency being pushed lower by Turkish fears. This assisted the DXY breakout for the fresh annual high two weeks prior. The DXY has retracted as the EUR/USD has recovered.

Other Markets


There is a question regarding pairs including the AUD/USD and the GBP/USD due to the bullish trend in the United States dollar. It may be we have pulled back for another continuation round or it could be dead and gone. The deviation in three major currency pairs may be found in the weakness of the United States dollar. Some markets are better positioned for a return of strength to the United States dollar.

The first half of August was bullish for the United States currency. There was a reversal during the month’s second half. On August 15th, the DXY topped out. This took out the support levels of the DXY in the process as a large zone of prior resistance. There was attempted support during the week until the trading for the last two days took out this area. The August swing low for the potential support is at $94.50, $94.27 and $94.02. These support levels can be used for anyone looking for a weakness in the United States dollar for bounces in the short term resistance.

The future for the USD


The shorter term charts reveal no evidence of a bottoming out of the DXY. Lower lows and higher highs are being made by the price action showing potential for continuation. The door is open for anyone not interested in selling the dollar due to prior support at a level of approximately $95. If the prices moves into this zone, shorter strategies may be attractive for forex traders interested in taking down the United States dollar to a level of deeper support.