U.S. Dollar weakness has priced-in with a vengeance over the past week. It was just last Tuesday that we were looking at the Greenback moving up to test a key area of resistance around 92.60, which was the December swing-low that later showed-up as resistance. But, in the week since, the Dollar has put in another extension of that bigger-picture down-trend, and we’ve seen as much as -2.32% taken-out as the Greenback has pushed down to those fresh three-year lows.

We are seeing a bit of a bounce on the morning after buyers began to show yesterday off of the 90.28 low. This keeps the U.S. Dollar in bearish territory, with the prospect of lower-high resistance around the prior zone of support in the region that runs from 91.01 (the 2017 low) up to 91.36, which is the 50% Fibonacci retracement of the 2014-2017 major move in USD.

U.S. Dollar via ‘DXY’ Daily: Down-Trend Extends to Fresh Three-Year Lows

Chart prepared by James Stanley

Last week’s downside run also brought DXY into the lower-half of the bearish trend channel that’s dominated the Greenback’s price action over the past year. A continuation-lower exposes potential support at the whole number-level of 90.00, followed by an area around 88.50, with 88.42 being the 61.8% retracement of that same 2014-2017 move looked at above.

U.S. Dollar via ‘DXY’ Weekly: Bearish Channel Continues, Potential Supports Applied

Chart prepared by James Stanley

EUR/USD Rally up to Fresh Three-Year Highs

Going along with that drop in the Dollar has been another bullish extension in EUR/USD. The Euro rallied up to a fresh three-year high yesterday, extending a run that started last week and hastened on Friday after the release of US CPI and Advance Retail Sales. So far on the morning, that move is tempering a bit as buyers take profits; but the big question now is where support may show in order for those looking to continue the bullish trend.