After the disappointing results of the NFP report released on Friday, the US dollar has been losing strength once again.
Since then, all fx majors have been appreciating against the US dollar, including the EUR/USD which overcame resistance level at 1.21.
Today's session is relatively calm but the USD continues to show weaknesses. Due to the lack of volatility in the market, the pair eur/usd pair has been trading sideways in the last hours
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Open account Try demo Download mobile app Download mobile appIf we look at the 1 hour time frame chart we can verify that we may be facing a possible consolidation zone (blue rectangle). However, once this zone is broken upwards, it might generate a new bullish momentum.
On the other hand, the RSI remains very close to the overbought zone and is a risk factor, which may cause new barriers for buyers
Eur/usd, 1 hour time frame chart. Source: xStation 5
If we look at the US dollar index (USDIDX), we can see that the price remains under pressure. Besides that, we can see that the price has broken the expansive channel, which may indicate that the bearish bias is not over yet.
USDIDX, Daily (D1) time frame chart. Source: xStation 5
GBP is the best performing major currencies while CHF lag the most
Source: currency-strength.com
Henrique Tomé, XTB Portugal
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