USD at a Crossroads: Can EUR/USD and AUD/USD Extend Their Gains?
EUR/USD and AUD/USD have surged as the US dollar weakened. But with the Dollar Index testing key support, is a near-term rebound taking shape?
Written by
Matt Simpson
Market Analyst
The US dollar has come under renewed pressure following last week's FOMC meeting and coordinated support for the Japanese yen by Japan's Ministry of Finance and the US Treasury. The move has fuelled gains in EUR/USD and AUD/USD, while raising fresh questions over whether the Dollar Index has formed a significant top.
US Dollar Outlook: What It Means for EUR/USD and AUD/USD
In this video, Matt Simpson analyses the Dollar Index on the daily and weekly charts, highlighting why it may be approaching a key inflection point despite the broader bearish outlook. He also explains why EUR/USD and AUD/USD could be vulnerable to a near-term pullback before attempting to extend their longer-term advances, and discusses the key technical levels to watch ahead of ISM surveys and Non-Farm Payrolls.
View related analysis:
- Australian Dollar Outlook: AUD/USD Rally Meets ISM, NFP and DXY Support
- Japanese Yen Surges as MOF Steals the BOJ's Thunder After FOMC
- Gold Bounces Within Range After Post-FOMC Dollar Selloff
- US Dollar Rally Builds Momentum, Crude Oil Holds the Key
- Australian Dollar Broadly Lower as Soft CPI Reverses RBA Hike Bets
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