- The US dollar index has come under pressure this afternoon
- Price retesting its lowest level since April last year
- The market hasn’t traded sub 92 since the start of 2015
The US dollar remains under pressure this afternoon with the US dollar index failing to build on Tuesday’s gains. The market is now back on its year-to-date lows and testing potentially critical support around 92.60. Following the US election victory for Donald Trump the outlook was very different when a move above the 100 level appeared to be an upside break to the range that had contained price for the past couple of years. However this move proved to be false and the market is now testing the lower bound and what could be seen as key support.
The USD index is now testing potentially key support at the bottom of its range. Source: xStation
If we change the timeframe to the daily it is readily apparent just how clean and clear the current downtrend has been. A series of falling trendlines can be draw since the high seen last December, with each one exhibiting a steeper gradient than the prior. These are denoted by 1-4 below and reflect the increasing pace of declines seen in the market.
The market’s pace of declines has increased as the downtrend has progressed. Source: xStation