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Andreas Zanin
Analysis | June 3, 2021

Outlook and forecast: USD and exotic coins

In a recent post we looked at EUR/USD and the potential for a breakdown You Can View the Post Here. In this blog we will look at three other European currencies which we think are attractive potential sells on the USD the CHF, SEK, and PLN. If the EUR falls this will spill over into the pairs we are looking at in this update

We think the USD will rally due to inflationary pressure which will force the Fed to taper stimulus which we noted in a post earlier this week Click Here to View.

There is general selling of the USD by large speculators and funds and they are accelerating their selling which we can see on the charts below

A lot of the big money is long of the EUR and also other European currencies – If the USD can take out resistance levels on the charts below we would expect significant short-covering rallies as the large number of speculators who are short are taken out on stop.

Technical Analysis

The setups below are all similar – the USD is holding nearby support and we are looking for a breakout of double trend line resistance and clear of the 20 Day MA ( Green Line) to follow through to the upside to resistance levels indicated, stops clear of nearby support on entry.

 

Research provided by LearnCurrencyTradingOnline.com

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