• +971(4) 430 6868

  • info@d1stp.com

  • 09:00 - 18:00

  • Sunday to Friday

17 August

By Amir El Araby

Category: Technical Analysis

 461       57       56             

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. 

For deeper daily analysis and direct recommendation, subscribe here 

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).