In today’s analysis, we will focus on the U.S. Dollar, which in the past few days, lost a bit of momentum and is currently in the bearish correction mode. Technical analysis gives us some hints, that this movement should be continued, at least on the Dollar Index and the EUR/USD, but do we have the same situation on other pairs with the USD?
First, let's take a look at the U.S. Dollar Index. Here, the price is in the short-term bearish territory, after the bounce from the major horizontal resistance. The bounce was not random but created the triple top formation. The pattern is already active, as at the beginning of the month, the 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 USD/CAD, 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, USD/CAD 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.
The last instrument is the AUD/USD, where the situation is surprisingly positive for the U.S. Dollar. The price created a flag in a downtrend, which ended with a double top formation. Today, AUD/USD is breaking the lower line of the flag, which in 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.