US Dollar Price Action Stalls After Fresh Low, EUR/USD Accelerates Breakout
The US Dollar experienced a fresh low this week following an announcement by the Treasury Department on increased buybacks. However, the price action stalled after the move.
EUR/USD saw its breakout accelerate, while GBP/USD and AUD/USD also broke out but at a faster pace than EUR/USD. The USD/JPY pair remains of significant interest due to its crowded long trade position.
The carry trade in USD/JPY is a complex situation with negative carry on short positions making it an unattractive endeavor until further evidence shows that the trend may be shifting.
Bulls continue to buy dips in USD/JPY, and despite several episodes of unwinding since 2022, the pair remains over 50% above its early-2021 level. The Fibonacci level around 99 on the Dollar chart presents a possible resistance area, along with the prior swing at 99.18 and 99.50.