The USD has been bullish throughout the week. The hawkish tone from the FOMC meeting minutes is a big reason for that. However, the greenback is giving back some of those gains today, despite strong US data points for jobs, manufacturing, and housing. Let’s take a look at the USDX, USD/JPY, and EUR/USD charts.
The USD Index (USDX) has been bullish after breaking above last week’s consolidation pattern. It fell today and broke this week’s trendline, but is still in a very bullish technical picture. The EUR/USD rebounded, but is holding below this week’s falling trendline, preserving the bearish bias. The USD/JPY broke above the 103 handle, and is now at the 104 resistance area. The consolidation looks weak, and the bulls still look in charge, so even this 104 level is becoming shaky as a resistance.
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