Do you favor buying and selling tendencies which can be your buddy?

Or tendencies that appear to be they’re about to bend?

Both method, I acquired you coated with 1-hour development setups on EUR/USD and the U.S. greenback index (DXY)!

EUR/USD 1-hour Foreign exchange Chart by TradingView

The euro has been making pips rain towards the greenback since mid-March when the pair bounced from the 1.0530 help.

However EUR/USD is sporting what seems to be like a Head and Shoulders sample on the 1-hour time-frame after getting rejected on the 1.1075 resistance TWICE final week.

Is the get together over for the bulls?

The SMAs holding their bullish tilt and the 100 SMA widening its hole towards the slower 200 SMA says “possibly not.”

Till we see a transparent breakout beneath the Head and Shoulders “neckline,” or till EUR/USD firmly trades beneath the SMAs, EUR/USD might lengthen its uptrend.

Look out for a bounce that would take EUR/USD again to its 1.1075 April highs.

In fact, if EUR/USD does break beneath the technical help ranges that we’ve recognized, then it’s best to hold shut tabs on inflection factors like 1.0925 or 1.0880 as potential targets.

U.S. Greenback Index (DXY) 1-Hour Foreign exchange Chart by TradingView

Can’t get sufficient of the U.S. greenback? Why not commerce the index?

DXY hit a backside at 100.75 final Friday earlier than greenback bulls flexed their muscle tissues and pushed the index again as much as the 101.50 space.

Before you purchase USD like world superpowers aren’t after its destruction, nevertheless, it’s best to be aware that DXY is having hassle sustaining its bullish momentum.

Particularly, DXY can’t appear to get previous the 50% Fibonacci retracement stage from final week’s downswing.

Can’t actually blame USD bears for the reason that 50% Fib additionally strains up with a mid-channel resistance AND the 100 and 200 SMAs on the 1-hour time-frame.

A rejection on the 50% Fib opens DXY to a visit again to final week’s lows beneath 101.00.

If you happen to’re not comfy promoting the greenback with out affirmation, then you may as well look ahead to a pair extra bearish candlesticks or new every day lows earlier than you intention for the earlier lows.