The Dollar Continues to Struggle with 83.00
The U.S. Dollar continues to be pushed lower by not only the Wave and the 83.00 psychological level but the constant pressure of varied news items. The Dollar suffered a huge fall at the announcement of the Chinese tariffs and while it has recovered, it continues to be challenged by the “00” resistance.
While some of the intraday charts have the U.S. Dollar neutral to slightly bearish, there is no doubt where the long term trend remains.
The uptrend line support should act as a near term support level and this morning’s ISM Index number may test that support’s resolve however as of current price action the 82.80 minor psychological level is holding.
The GBP/USD and EUR/USD broke higher this morning with the GBP/USD very strong and the EUR/USD moving slightly higher as the U.S. markets awaited the ISM results. The EUR/USD found resistance at it’s own “80” pip level of 1.3380.
Since the U.S. Dollar remains in the range it established earlier this morning, there is little follow through on the Dollar-correlated majors this morning.
The EUR/USD is transitioning into a possible swing opportunity as the Wave has begun travelling at a shallow 12 to 2 o’clock angle. Keep an eye on it for follow-through especially if the U.S. Dollar heads back down to test the 80 tick level.