Time between Christmas and the New Year is definitely one of the worst weeks for the American Dollar in 2017. Negative sentiment towards the USD can be seen everywhere. It all starts with the Dollar Index, where we can see major bearish formation – head and shoulders pattern. Yesterday and today the price broke the neckline of this pattern and the mid-term upwards trend line. This is a sign to go short on the Dollar.
EURUSD is using another (fourth) flag to climb higher. History really likes to repeat itself. The latest development here is the breakout of the long-term downwards trend line connecting recent major lower highs. That is very positive for the EURUSD.
GBPUSD is also bullish. Here, we broke the upper line of the wedge pattern, which has opened us a way towards the tops from September on the 1.362. Positive sentiments stay with us as long as we stay above the 1.332 support.