In today’s analysis, we will focus on the American Dollar, which in the past few days, lost a bit of momentum and is currently in the bearish correction mode.
First, let me show You the situation on the Dollar Index. Here, the price is in the short-term bearish territory, after the bounce from the major horizontal resistance. Bounce was not random but created the triple top formation. Pattern is already active, as at the beginning of the month, price broke the neckline, giving us a sell signal. The first target for this movement is the blue up trendline. Chances that we will get there are quite high.
Next instrument is the USDCAD, where June brought us a major sell signal too. It all started with the false bullish breakout from the rectangle. At the end of the last week, USDCAD broke the main up trendline, which only confirms the negative sentiment. Currently, the price tries to climb up but it seems that this is only a short-term correction.
Last instrument is the AUDUSD, where situation is surprisingly positive for the American Dollar. Price created a flag in a down trend, which ended with a double top formation. Today, AUDUSD is breaking the lower line of the flag, which I theory, brings us a sell signal. If you are still not convinced, you can wait for the additional confirmation coming from the possible breakout of the 0.694 support, which may even happen today.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis