Short Squeeze in the US Dollar?

Image Credit: Google 15/07/2024

The US dollar has once again seen a major decline this week.

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The DXY has seen a significant decline over the last 14 days, now trading below the December trend line at 104.80.

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However, the dollar index is above support at 104.00, making USD shorts risky at current levels.

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If the DXY drops below 104.00 on a daily closing basis it will head towards 103.00.

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It would be bullish for the DXY to reclaim the December trend line and open up levels such as 105.10.

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Last week the GBPUSD has seen a staggering rise of 300 pips in just two weeks.

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This seems like a sign of how this multi-year consolidation will break, especially now that the pound has crossed 1.2900.

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As long as GBPUSD remains above 1.2900, areas such as 1.3000 and even 1.3140 will remain open.

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However, if the pound drops to 1.2900, especially 1.2860, it would signal a bearish trend towards the highs of 1.2800.

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However, the AUDUSD and NZDUSD pairs have struggled against their other peers due to US large-cap stocks.

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France issues warning list of 50 forex and crypto firms

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