The US Dollar Index (DXY) pared recent gains on the back of overbought daily conditions. Wednesday's price-action carved out the right shoulder of an hourly Head & Shoulders pattern. A sustained loss of neckline support at 80.70 projects a relapse back to the psychological 80 threshold. Meanwhile, the dollar remains structurally bullish while price-action remains above the 79.461 swing high. Reclaiming 25-hour moving average resistance negates the aforementioned bearish pattern and could trigger an extension to the targeted 82 region.
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The EUR/USD broke out of an hourly consolidation pattern overnight and has retraced a quarter of losses off last week's peak. Wednesday's move has solidified a tweezer bottom formation. The clearance of 1.3150 would confirm an hourly inverse Head & Shoulders pattern. This would project further corrective strength towards the 1.33 handle, where a key Fibonacci retracement lies. Back below 1.3050 will refocus the 1.2940 region, where an equality target lies.
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The AUD/USD rebounded off the 100-day moving average, triggering a falling wedge breakout. A sustained clearance of key resistance at .9700 would suggest further strength towards 20-day moving average resistance.
