The dollar is down for a third consecutive day, giving way to all currencies of the G-10. All this comes amid fresh fears about US tax reform. The last rally of the dollar, however, led to a key breakthrough in the Dollar index above the mid-term downward diagonal. The value of the index is now at support levels of 50SMA and the mid-term diagonal. Trump's talks with key lawmakers and the rumors that he will be able to remove Obamacare helped the dollar not to return to the downward channel.
Let's look at the major US dollar crosses and see how we can trade them
EUR/USD: The currency pair broke the mid-term upward trend and formed the Triple top formation. The price is currently testing the breakthrough line of the formation and giving good opportunities for Sell. Over the long term, the price has failed to pass successfully above 1.2031 - a level of resistance formed by the bottom in July 2012.
Chart 1 EUR/USD
USD/JPY: The pair still remains in the downward channel, forming a wide range from mid-April to the present. The dollar fails to break through the last peak, as many geopolitical issues increase the value of JPY, and many investors see it as a currency of refuge. The levels provide a good opportunity to hedge long dollar positions with SL above the local maximum: 113.81.
Chart 2 USD/JPY
GBP/USD: The worsening situation around Therese Mae's post and the many questions about whether the UK will be able to negotiate a free trade deal with the EU put pressure on the cable. The H4 movement of GBP / USD provides good short-stakes, with the cost reaching levels of diagonal, horizontal and dynamic resistance (200SMA). SL we can put above the resistance levels at around 1.3250
Chart 3 GBP/USD
Jr Trader Petar Milanov
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