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العربية
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17 August

By Amir El Araby

Category: Technical Analysis

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Potential topping on EURUSD, potential bottoming on DXY

As we know, DXY is strongly influenced by EURUSD since EURO represents the bigger percentage of Dollar index; hence, we are about to introduce a quick comparison for both EURUSD and DXY over weekly studies.


EURUSD has moved to the downside after touching 2010 lows –former broken long term support turned into resistance- while SMA200 played a big role pushing EURO to the downside during this week where we believe that, the previous 2 weeks’ closings could be a false breakout above SMA200.

Additionally, the overbought case appearing on Stochastic RSI indicates uptrend exhaustion.

On the contrary, DXY has bounced after touching the long-term support of 92.50, which intersects with SMA200 as well; noting that, oversold sign is clear on the graph.

With that in mind, area of 1.1580 could be targeted; whilst 1.1760, 1.1820 and 1.1845 become tough levels to be taken out. 

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Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).