Solid (USD) Dollar, Not So Strong Euro (EUR)... Who Will Win The Battle? Dollar Index (DXY) Is Rising!?

There Is Still A Possibility Of A New Fall In Stock Indices

Summary:  EURUSD is closing in on parity. Will it test it and break it? US Dollar Index close to test 2017 peak and resistance. If broken the Index is likely to reach levels not seen in 20 years.


A test and especially a break of Parity is for sure something that will create headlines worldwide

EURUSD has broken below support at around 1.0730 and is dropping fast towards key support at 1.0340. A break below, which is likely EURUSD will be set for parity i.e. EURUSD at 1.00.
That level is not a technical level but merely a psychological level. A test and especially a break of Parity is for sure something that will create headlines worldwide.

Read next: Saxo Bank: "FX Update: Tension builds on BoJ policy stance ahead of meeting tonight."| FXMAG.COM

If parity is broken we are likely to see a dip to around 0.96 before a bigger correction. 0.96 was the bullish break out level from the 2000-2002 Bottom, Consolidation and Reversal area in the form of a Symmetrical Triangle pattern.

RSI below 40 and no signs of exhaustion. Bollinger Bands expanding i.e. we are in initial phase of the (down)trend

Source: Saxo Group

The US Dollar Index is closing in on 2017 peak at around 103.82. If broken a likely price target is around 110 where there is a cluster of Fibonacci levels.

Source: Saxo Group

Source: Saxo Bank

There Is Still A Possibility Of A New Fall In Stock Indices

Saxo Bank

Saxo Bank is a global investment bank with a Danish banking license.
It is subject to strict regulation in 15 jurisdictions, including Denmark, the United Kingdom, and Singapore. We also hold banking licenses in Denmark and Switzerland.
When you invest with Saxo Bank, you have access to a state-of-the-art trading platform and over 40,000 financial instruments, including more than 22,000 stocks from 50 stock exchanges worldwide. It also provides access to global analyses prepared by a world-class analytical team.