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Technical Analysis of USD:
1. USD/JPY Daily Chart Analysis:
The USD/JPY pair has been exhibiting an interesting pattern on the daily chart. A sustained upward movement in the pair can be noticed, highlighted by higher highs and higher lows. This trend indicates a potential rally in the USD, supported by strong bullish sentiment.
2. Figure 1: Key Levels to Watch:
The key levels to watch for the USD/JPY pair are the immediate support around 110.00 and the resistance level at 112.00. A break above the resistance level could signal a further upward move in the USD, reinforcing the possibility of a perfect rally in the near future.
3. USD/CAD Technical Analysis:
Similarly, the USD/CAD pair is showing signs of a potential rally. The pair has been trading within a well-defined ascending channel, indicating an uptrend in the USD relative to the CAD. The recent bounce off the lower boundary of the channel suggests bullish momentum in the USD/CAD pair.
4. Figure 2: Ascending Channel in USD/CAD:
In Figure 2, the ascending channel in the USD/CAD pair is clearly depicted. The pair is currently trading near the lower boundary of the channel, providing a potential entry point for traders looking to capitalize on the anticipated rally in the USD.
5. Relative Strength Index (RSI) Analysis:
Furthermore, the Relative Strength Index (RSI) for both USD/JPY and USD/CAD is showing bullish momentum. The RSI values for both pairs are currently above the 50 level, indicating strength in the USD against both the JPY and the CAD.
6. Implications for Traders:
Traders looking to benefit from a potential rally in the USD should closely monitor the key levels in the USD/JPY and USD/CAD pairs. A break above the resistance levels could serve as confirmation of the rally, prompting traders to enter long positions in the USD.
7. Conclusion:
In conclusion, based on technical analysis and chart patterns, the USD appears to be setting up for a perfect rally against major currencies like the JPY and CAD. Traders can use this information to formulate their trading strategies and potentially profit from the anticipated upward movement in the USD.
