USD/CHF to lead DXY higher, AUD/USD, EUR/USD lower?
Our bias is for the US dollar index to rise to 105 over the near-term. The daily chart respected trend support from the December low, and the 4-hour chart shows a small ascending triangle which implies a break above resistance.
Out of the FX majors, USD/CHF looks ready to break above resistance and lead the dollar broadly higher. Bears could also consider a short on AUD/USD on the assumption the high of RS (right shoulder) has been established, and seek a move down towards the neckline at a minimum. A break of which could see it head for the projected H&S target around 0.6580.
If the US dollar index goes higher, surely EUR/USD should move lower. Bears could enter short with a view to target the swing low around 1.0835 or the bullish trendline.
Out of the FX majors, USD/CHF looks ready to break above resistance and lead the dollar broadly higher. Bears could also consider a short on AUD/USD on the assumption the high of RS (right shoulder) has been established, and seek a move down towards the neckline at a minimum. A break of which could see it head for the projected H&S target around 0.6580.
If the US dollar index goes higher, surely EUR/USD should move lower. Bears could enter short with a view to target the swing low around 1.0835 or the bullish trendline.
