USD index rises to 2021 highs

The USD index, on the D1 time frame, hit a new 2021 high last week at 96.24. Even so, despite posting a fourth straight week in the green, USD reliability lifted the price towards resistance between 96.37 and 95.80. It is largely made up of Fibonacci ratios, including the 100% Fibonacci forecast from 95.94 (following the AB = CD harmonic pattern).

USD index rises to 2021 highs

Additionally, the W1 relative strength index has recorded overbought conditions (on the weekly chart) and the D1 daily time frame RSI could create a bearish divergence around the zone. overbought in the coming days. Any reaction at resistance has a decisive point at 94.96-95.26 for target, followed by support from 94.65 and trendline support, taken from the 89.84 low. .

Another tactic, if the resistance breaks this week. Supporting higher levels is the current trend, which has been established through a series of higher highs and lower lows since the price made contact with support at 89.69 in May. Hence, this strategy. could strengthen the bearish buying scenario between 94.96-95.26 or 94.65 this week.


Week time frame -W1

The Euro fell 1.4% and registered a new 2021 low against the US currency.

However, support is at the 61.8% Fibonacci retracement level at $1.1281 and the 1.618% Fibonacci projection from $1.1237, providing a possible ‘floor’ this week. Harmonic traders will assume the 1.618 percent component represents an ‘alternative bullish AB = CD pattern’. Right on the exchange, resistance is located at $1.1473-1.1583.

Trend studies show that the pair hit a November 2, 2020 low at $1.1603, indicating a major downtrend. Thus, this calls into question the value of current support ($1.1237-1.281).

Daily Time Frame- D1

Quasimodo support is at $1.1213, central on the daily chart. Broken, the next support target lies around the vicinity of $1.0991.

According to the relative strength index RSI, in the oversold area and the beginning of a potential bullish divergence.

Timeframe H4

The $1.1387-1.1366 decision point served sellers well in the second half of the week, guiding a move to the lows ahead of the Quasimodo support at $1.1243.

$1.1243 is aligned just north of daily Quasimodo support at $1.1213 and is placed within weekly support walls of $1.1237-1.1281.

H1 timeframe

At the beginning of the European session on Friday, the price fell at $ 1.1361-1.1351 and stopped at $ 1.13.

Demand$1.1235-1.248 appeared briefly upon entering the frame after the $1.13 support level fell from its hold.

Forex rate analysis is EURUSD

From a Technical Analysis point of view


W1 week support at $1.1237-1.281 is key this week. However, noting the milder bearish range on the daily time frame for Quasimodo support at $1.1213 and the bearish weekly trend direction, traders may be left wondering at the $1 price point. 1237-1,281.


The combination of H1 demand at $1.1235-1.248 and H4 Quasimodo support at $1.1243 is notable. Therefore, a rally from $1.1235-1.1248 can be formed.

Before the above can happen, a bearish phenomenon can open below $1.13. Bearish candlestick pattern can offer short-term bearish expectations towards $1,1235-1.248.

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