Geopolitical events continue to dominate, and this is being played out in the markets as a bearish bias on risk assets and investors continuing to head to safe havens – one of which is the US Dollar.
On the US Dollar Index chart, we have the 78.6% retracement at 100.785 (of the move down from the 2020 peak) and the 2016 and 2020 highs just shy of 104.00. But this is even more evident on the EUR/USD this chart as this is just starting to break below the 22-year uptrend. The 2020 low at 1.0635 and 1.0340 2017 lows are likely to provide some support on route to parity.
When markets start to accelerate lower in this manner, I tend to drop down into hourly charts, and utilise a combo of clouds and Fibonacci and the 9-period RSI to pinpoint where to drop stops down to.
We can see on the hourly chart that resistance converges 1.1080/1.1160 (28th January low and double Fibo). The base line and conversion line of the cloud formation offer initial resistance at 1.0945, 1.1027.
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The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
On the US Dollar Index chart, we have the 78.6% retracement at 100.785 (of the move down from the 2020 peak) and the 2016 and 2020 highs just shy of 104.00. But this is even more evident on the EUR/USD this chart as this is just starting to break below the 22-year uptrend. The 2020 low at 1.0635 and 1.0340 2017 lows are likely to provide some support on route to parity.
When markets start to accelerate lower in this manner, I tend to drop down into hourly charts, and utilise a combo of clouds and Fibonacci and the 9-period RSI to pinpoint where to drop stops down to.
We can see on the hourly chart that resistance converges 1.1080/1.1160 (28th January low and double Fibo). The base line and conversion line of the cloud formation offer initial resistance at 1.0945, 1.1027.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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