In recent months, the US dollar (USD) has experienced a significant weakening trend, catching the attention of traders and investors worldwide. This development has led to a surge in interest and speculation as market participants analyse the potential implications and opportunities arising from the USD weakness. 

In this analysis, we will explore the reasons behind the USD's decline, its impact on global markets, and how traders are positioning themselves to take advantage of this situation.

The EURUSD Performance

(UPDATE) - EURUSD has completed the bullish setup.

EURUSD aggressively took off after bouncing from the 61.8 fib retracement level and forming a double bottom. This pattern added to the confluence and increased the probability of the market rallying to the upside. 

The NFP figures also indicated a weaker dollar is on the cards and as such, this perfectly correlated to the price action on EURUSD. At the moment the market is trading at the top of the ascending channel as well as the starting point of the previous descending channel where traders will look to secure their profits and exit the market as the bullish setup is finally complete.

The GBPUSD Performance 

(UPDATE) - GBPUSD is just a few pips from completing the bullish setup.

USD weakness continued against the Pound since the previous commentary and is now up +300 pips. This price action completes the bullish setup from the test of the support zone around 1.26606. 

Looking at where the market is currently trading, traders will start managing their positions and securing profits and monitoring price action. This is with the possibility of the start of a retracement from the top of the channel. However, there are indications of a further USD weakness as seen by the price action on indices as well.

The NZDUSD Performance

(UPDATE) - NZDUSD completes the bullish setup.

The NFP and this week's inflation figures have put more pressure on the USD and traders have their targets reached on NZDUSD. The market rallied +120 pips to the top of the ascending structure which broke above the bigger descending channel. This price action completes the ascending structure and as such, traders will now start making movements.

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The US30 Performance

(UPDATE) - US30 is close to completing the bullish setup.

US30 aggressively broke above the previous resistance zone around 34151.32 and is now closing in on the target. This price action provided trading opportunities to the upside and also added to the confluence. At the moment traders are monitoring the market with the possibilities of a retest forming on the support zone before scaling-in into their positions.

Final Thoughts On Today's Analysis

The weakening of the USD has attracted the attention of traders who are actively adjusting their strategies. While the USD weakness presents opportunities in various markets, traders must remain vigilant, manage risks effectively. Additionally, stay informed about the factors that can influence currency values. As always, prudent decision-making and a comprehensive understanding of market dynamics are essential. Watch our YouTube channel to get more insights into our analysis.