EUR/USD, GBP/USD Slip At Support As USD Touches Fresh February Highs

US DOLLAR LOOKS TO CLOSE FEBRUARY ON A BULLISH NOTE

The US Dollar continues to exhibit strength as we near the end of February. Here on the last day of the month, the Greenback has just touched-up to a fresh February high of 90.60, testing through the prior mark at 90.57; making for quite the interesting end to what’s been an eventful month. It was just two weeks ago that Dollar-weakness was permeating through most major pairs, continuing the trend that’s been in-place now for more than a year. But, as we turn the page into March, given some of the drivers that have helped to form this bullish move over the past couple of weeks, and there’s potential for continuation here. We discussed this in yesterday’s webinar at-length, with the primary premise derived from the fact that the Dollar has finally been able to hold-above the 90.00 level.

US DOLLAR FOUR-HOUR CHART: TOUCHES UP TO FRESH FEBRUARY HIGH ON LAST DAY OF THE MONTH

EUR/USD SLIPS AT SUPPORT, BUYERS TRYING TO HOLD THE LINE

USD Strength helped EUR/USD set a new February low yesterday, but once we touched below the prior swing of 1.2204, bears go bashful and prices pushed back above support. This makes for a rather unattractive setup in both directions: Bearish breakouts are complicated by the fact that we just had a false breakout yesterday. Bullish reversals are challenged by the fact that we just had a fresh low, and bulls haven’t exactly showed any tendency of reversing that move yet.

The more proactive way of going about manners may be to wait and see if bulls can hold support above yesterday’s swing-low, at which point a short-term bullish reversal setup can begin to get attractive. Alternatively, for those that want to sell, they can wait for some element of resistance to come into play off of prior support around 1.2281.

EUR/USD FOUR-HOUR CHART: BEARS GET BASHFUL AT FRESH FEBRUARY LOWS