US Dollar: A Dump or a Correction?

US Dollar: A Dump or a Correction?

2022-09-13 • Updated

After completing a substantial 4-week bullish rally, the US dollar closed last week with a big bearish candle, which has led to a 2.63% decline in US Dollar prices. The million-dollar question on traders' and investors' minds: is this the start of a US dollar dump or just a correction? While we await the CPI (Consumer Price Index) and Inflation Rate (YoY) release later today, the technical standpoint indicates that the recent bearish move is mostly just a retest of the 20-year highs. My bias is confirmed further by the presence of the 50-day Moving Average as an added confluence. 

UsDollarDaily-1309.png

GBPUSD

GBPUSD is currently heading towards the Daily Resistance zone between 1.17615 and 1.18346. There's also a possibility of the price bouncing off the 50-day Moving Average to continue the bearish trend, provided the US dollar regains its strength.

GBPUSDDaily-1309.png

EURUSD

The retest of the upper trendline resistance on EURUSD coincides with the Fibonacci golden level and the 50-day moving average as confluences. It is pretty safe to expect a continuation of the initial bearish trend.

EURUSDDaily-1309.png

USDCHF

As you can see from the USDCHF analysis below, the price has reached the Daily Pivot zone between 0.95099 and 0.94793. There is also a confluence of trendline support and the 200-day Moving Average serving as confirmations for the resumption of the bullish trend.

USDCHFDaily-1309.png

NZDUSD

With the NZDUSD daily resistance zone at 0.61468 and 0.61866, there's a big chance that the bearish trend will regain momentum. The 50day MovingAverage also acts as a possible resistance level for the price to react from.

NZDUSDDaily-1309.png

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