DXY Rises as EUR/USD and GBP/USD Diverge
The US Dollar Index (DXY) has been on an upward trend due to rising yields, which has caused EUR/USD and GBP/USD to diverge. According to technical analysis, the Rising channel and higher lows should continue to push the index higher in the near term, but a break below support at 100.67 would put the trend into question.
The EUR/USD pair is currently trading at 1.1362, showing further signs of weakness after slipping beneath the 1.1325 support zone. With both moving averages below the current price and in a lower high formation, the pair has potential to move even lower. The first significant level of resistance is near 1.1412, with further resistance at 1.1455, 1.1504, and 1.1558 if broken.
Despite some bullish signs from the RSI near oversold territory, analysts believe further downside may be limited at this time. If current support at 1.1325 is broken, further support comes in at 1.1266 and 1.1211. A break above 1.1412 could negate a bearish bias.
GBP/USD is holding steady near the 1.3205 level, with 1.3250 serving as the first hurdle for recovery.