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>> Hello everybody, Drew Dorzik here with
Verified Investing and over the last
month or two currencies have definitely
been moving in the markets and it's
mainly been because of the Japanese Yen
and carry trade, the US saving
intervening with the Japanese Yen that
kick-started the fall of the dollar and
then it even went further falling down
when percent announced that he was going
to be buying back treasuries double the
pace that he's been doing before and
this is
been because there's not a lot of demand
for the long
dated debt. All right, there's been a
big bond sell-off across the world, too.
And so that's been putting pressure on a
lot of yields. Yields in as well as
inflation rates are rising, yields are
rising,
which is causing a lot of central banks
including the European Central Bank with
its most recent inflation print of 3.3%
that they're going to be raising rates
next week. And so with all of this
uncertainty has done is actually with
the fall of the dollar, it's actually
pulled more investors back into the
dollar for a safe haven. So there's a
lot of macro background going on here,
but let's get into the technicals. Let's
break down what we see on the charts and
first start off with the dollar, the DXY
on the daily time frame. As I
highlighted, here was the Japanese Yen
intervention and then here was the
intervention with percent. So we had two
big slides on the dollar and you can see
here technically we had an inclining
trend line defining price action on this
chart until it broke and it did so by
forming a bear flag before breaking.
This is an ideal technical setup as we
like to see
any sort of foreshadowing with patterns
on charts and this did exactly that, put
in a bear flag implying we were going to
go lower. And not only did it do it, it
did it on top of a level of support
Hitting this level of support over and
over and over before finally breaking,
coming down to the next level of
support, which you see here is the 50%
area of this inclining parallel channel
that the dollar has been trading in
within since August of 2025. So, that's
where we're getting our bounce up.
Generally, whenever we have these sorts
of breaks, price likes to come back up
and retest the trend line from which it
broke. So, I expect some more movement
up on the dollar in the near term,
likely finding resistance once attacking
this inclining trend line right around
the 121 mark on the charts. Uh next up
with the Great Britain pound, as you see
here, the dollar, as I mentioned,
gaining strength from investors
worldwide with this global bond sell-off
and and extremely high rates. So, if
folks are being attracted to the dollar,
which is actually pushing uh the Great
Britain pound down as the dollar is
gaining a little bit of strength. Now,
you see here, the Great Britain pound is
not in jeopardy of a breakdown. I've got
this defined with an inclining trend
line dating back here to April of 2025.
We've hit this level on this inclining
trend line several times, but we still
got a room to go before we attempt to
hit it again down at 1 and 33. We can
see we're up here at 1.35. So, we've got
at least a couple cents, several days,
and if if not even weeks of trading
potentially before we hit this level and
can be talking about a breakdown. And if
that's the case, as I said, 1.33, keep
that on your radar. Next level of
support should and if this break is down
here at a buck 30. Next up into the
euro. And actually, you know what? Let
me go back to the Great Britain pound. I
want to show you where the top end range
of this resistance is coming from. You
can see this is coming from all the way
back here in April of 2018. You can see
that uh trend line has worked like magic
with price coming up, tagging it twice
in this short period, coming up, not
quite hitting it, but kissing it, and
and putting in a weekly topping tail,
illustrating that would be difficult for
price to get above in the near term and
that's exactly what's happened. So that
upside target for resistance is at a
buck 39, but really what I'm watching
with price closer to this downward
potential movement for support on this
inclining trend line at a buck 33.
Uh next up into the euro, slightly
different scenario going on here with
the euro as I said with the European
Central Bank due to hike rates next
week, we actually see the euro on the
verge of a potential near term
breakdown. Now we've already done this
before and we did it on the break on
June 17th of this year. Notice when
price came back up, re-attacked that
trend line much like what I said would
happen if
um
or if the dollar continues moving
higher. It just re-attacks the trend
line from which it broke much like what
the euro did right here and you can see
how the euro pushed back over that trend
line and then we find ourselves right
back on that trend line putting in
bearish consolidation looking like we
were about to go lower. So next level of
support is going to be right here at a
buck 14. Break that level and then we're
coming down to a buck and 11 cents right
there on the chart of the euro and the
US dollar. Much like the Great Britain
pound, we have a longer term declining
trend line dating back here to 2018 as
well that has capped price up on this
chart with a weekly topping tail much
like what occurred over on the Great
Britain pound US dollar chart. Uh lastly
guys, we got the US dollar and Canadian
dollar. Now you know we've had some
trading uh tariff wars going on with
Canada recently. So I wanted to check
this chart out to really see the value
of the US dollar over the Canadian
dollar and we see here most recently
with the wave of interventions, uh the
price on the US dollar and Canadian
dollar has actually plummeted. It did
not tag this key level of support. One
trend line that you can see goes all the
way back here to 2021
and was strung together through these
low pivots. Price came instead of
hitting that, it actually hit the high
range of the consolidation back here in
March of 26 instead of hitting that
trend line, bouncing up. Where's the
next resistance should this continue
moving up with the dollar
potentially weakening slightly
against the Canadian dollar? Well, the
resistance would be right here at a buck
40. We have these low pivots almost like
a pseudo M pattern at play. Price runs
up into that range, will catch
resistance and likely then come back
down into this consolidation range where
price has done so the last three to four
trading days. All right, guys, that
wraps up today's pro chart video on
currencies. A lot of movers, a lot of
stuff going on in the background as far
as investors taking investments off of
one currency, putting it on to the other
currency, namely the US dollar with all
of this fear going on with rising yields
and rising inflation concerns.
Guys, sit around, enjoy the rest of the
videos. We've got a lot of free content
for you to learn technical analysis.
That's the goal to help you on your next
trade setup. Thank you again for
watching. My name is Drew Dosik. We'll
see you on the next pro chart video.
Until then, have a great day, folks.