The Super Dollar, that in the last week has compressed the prices of the main world currencies after the decisions of the FED , stops its running and gives breath to the market: now, on all the couples of currencies, has taken shape a morning star that could generate a trend reversal.
The rise of the US dollar in the last two weeks has been fueled by the election of Donald Trump to the White House and then, above all, by the words of Janet Yellen who reiterated the willingness of the Federal Reserve to raise the interest rate. For the moment, at least in the short term, the currency pairs seem to have reached important targets and going to change direction.
Forex, the morning star of the market
The new week began with a recovery from all major world currencies against the dollar and charts with daily timeframe drew, in a more or less clear, morning stars that could indicate the start of a trend reversal phase .
On the euro-dollar exchange rate, the 1.0570 support has led to a clear bounce that could bring the price to the resistance of 1.0966, although in this currency pair weighs very divergent monetary policies.
Similar situation on the pound-dollar exchange rate: the 1.2331 support has resisted the lowering of prices and, if the recovery of the pound will continue, the next target will be 1.2878.
Very accentuated morning stars also formed on the exchanges with the oceanic currencies, in a day the Australian dollar and the New Zealand dollar has gained, against the US dollar, over 80 pips, revealing thereself a real trap for the bears.
The chart is reversed for the dollar-yen pair, where the 111.00 roof proved a strong resistance to the strength of the dollar: the formation of an evening star could then generate a price retreat to the holders of 109.37 and 107.96.