US Dollar Currency Index Breaks Below Its 92.50 Level

EURUSD is sorrowing on the weak USD

FOREX 7

On Tuesday, the US Dollar was bearish against all of its major currency pairs while the US Dollar Currency Index broke below its 92.50 level, reaching a low last seen in May 2018. On the U.S. economic data front, Housing Starts jumped to 1,496K on month in July (1,245K expected), from a revised 1,220K in June. Building Permits increased to 1,495K on month in July (1,326K expected), from a revised 1,258K in June. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending August 14th is expected. Finally, the Federal Open Market Committee is expected to release its Meeting Minutes for July 29th.    

The Euro was bullish against most of its major pairs with the exception of the NZD and GBP. In Europe, no major economic data was released.

The Australian dollar was bearish against most of its major pairs with the exception of the USD.


The EUR/USD surged 61 pips to 1.1931 on Tuesday, reaching a high last seen in May 2018. The currency pair broke to the upside of a short-term sideways channel that began to form on July 27th. Price is using the 20-day moving average as rough support. The pair will likely continue advancing towards 1.2090, a major level from 2017. If price can break above 1.2090, it could likely grind higher to 1.2220. If price pulls back, look to the 20-day moving average for a potential bounce. If price falls below its 20-day moving average there is a high probability that it will bounce off of the 1.1695 support level.          



Source: GAIN Capital, TradingView

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.