From the Desk of Ian Culley @IanCulley
When it rains, it pours.
Markets chop sideways most of the time. This has been the reality for forex markets for much of the year.
But that’s starting to change as numerous US dollar pairs reach new 10-month highs. The dollar is taking down crucial levels while the US Dollar Index $DXY retests a year-to-date downtrend line and key former highs.
The peculiar coincidence sets up some potentially critical resolutions for these USD pairs.
If they fail, the dollar rally is likely over.
If they hold and additional USD breakouts materialize, selling pressure will intensify for many risk assets.
As of today, quite a few forex pairs are on the verge of supporting a sustained US dollar rally…