*Live financial market analysis of the US Dollar via multiple FX currency pairs*
Welcome back to the blog and may I wish you all a very happy new year! This is my first blog post of 2021 and I am going to get straight in to it and run you through my refreshed price charts for all major FX pairs containing the US Dollar currency.
I am going to be showing you the higher timeframe price charts with key levels and any patterns or trends I see forming. You can then take these charts and use them as part of your own analysis for any future potential trade set ups that you might find. Remember, keeping it simple is the key to good analysis and you will see that on all my charts I keep things very clean with only a few indicators and annotations.
Let’s start with GBPUSD FX currency pair.
Although I hold a bearish bias on the Pound at the Monet, there is no denying that the GBPUSD is seemingly bullish right now and this shows just how weak the US dollar is. Traders are betting on continued weakness of the dollar and increased money supply is a large influence for this.
On the GBPUSD chart above you can see that price is now trading above both the 50 and 200 EMA’s and has made new higher highs and higher lows in recent weeks. Since the lows of around 1.14500 back March 2020, Cable has been climbing every since.
Keep an eye out for any significant pullbacks because I think this could be a pair to buy in to as the dollar weakens and potential for the UK to pull through the first few months of being out of the EU.
EURUSD weekly chart.
I have covered a long term price view analysis of the Euro Dollar currency in great detail in a previous blog post which you can find via the link below. Not much has changed and it appears that the EURUSD FX currency pair is still sticking to the plan.
Price broke through the 1.20 key price level and resistance zone last year and has gone on to climb to new multi year highs of 1.23. As it stands, there is resistance forming here and potential for price to pullback and retest 1.20 before going higher.
Despite issues with Brexit, Europe experiencing rising covid cases and general economic weakness in Europe, the euro has done well against the dollar. The weekly 50EMA is now trading above the 200 EMA and this is a strong bullish sign for the long term.
USDJPY weekly chart.
The USDJPY chart paints a dire picture for the US dollar this year. Initially, back in March 2020 when the coronavirus pandemic first made it’s way across the globe, USDJPY sold off and price reached multi year lows of 101.180 which had not bee seen since mid 2016. Then came the extreme FX volatility and price almost fully recovered on this FX currency pair.
Since then the US dollar has counted to sell off week in week out with price now retesting 103.00 and this minor level could break with ease. The next 2 price support zones I have are the 2020 lows of 101.180 and then the nice round number of 100.00.
The US economy is in a bad way and it is becoming increasingly reliant on fiscal stimulus to stay afloat. Money supply of dollars is likely to increase through the next few years and this WILL have an effect on USD across the board.
Be careful shorting the USDJPY pair for any considerable amount of time with leverage because carry charges, although reduced thanks to global rate cuts, are still largely negative on bearish UJ bets.
Coming up this week...
I am going to continue with the weekly chart packs blog post that will be published every Tuesday morning. I plan to add more analysis and detailed charts as time goes on and if you have any requests for charts then please do message me.
Later this week I am also going to publish a blog post which will be a trade breakdown of my very first trade of 2021 which was a GBP day trade I entered today. It will be a highly detailed blog with step by step explanations of why I entered the position and also my trade management throughout the entire process.
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DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.