EURUSD/DXY Market Analysis-The Dollar Slips

This week the DXY has been falling quite heavily opening at 108.600 and has seen lows of 107.810. Currently sitting at 108.084 the DXY can still see more selling pressure this week. From a weekly perspective the near half period MACD line has fallen below the signal line signaling strong selling pressure at the start of the week, it may continue for a few more weeks and can be risky to buy here. Recently the EURUSD pair presented a 4 hour short and a long on the DXY. The 1 week RSI has recently started to move towards neutral from oversold this week and also for EURUSD the 1 month RSI has moved towards neutral from oversold. This can signify strong momentum. If it were not for the fundamental interest rate hikes the monthly charts could see some strong momentum changes, but with the rate hikes on September 21st this might be delayed. From a weekly perspective we can potentially see a few more weeks of bearish dollar strength, while the euro can see bullish momentum. The 4 hour chart looks mainly neutral right now as the RSI has shifted towards the neutral zone. $EUR/USD $USD Currency Index

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