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>> Hello everybody, Drew Dosik here with
Verified Investing. Today, we're going
to break down some currency charts.
First off, starting with the US dollar
as it's really gaining strength
recently. Matter of fact, it is in
breakout mode that is affecting all the
other currencies internationally. So,
let's get into the chart of the US
dollar starting off with the DXY on the
daily time frame. Notice guys, I've got
this blue inclining parallel channel.
For the most part, it contained price
ever since August of 2025. We breached
it here in June of this year. Then
failed as we started announcing this was
the
the carry trade over in Japan where we
helped stabilize the
Japanese yen.
And in doing so, we did we converted
dollars over to euros to do that.
Regardless, that decreased the dollar's
value. Then here was the percent buyback
offer tapering the 10-year yields. Here
was the increase doubling up that amount
where we had price action react
negatively to that. And then look, ever
since then guys, it's been up up and
away on the charts of the dollar just
pausing here for like two or three daily
candles on the inclining parallel and
then continuing to break higher. Great
breakout here on the DXY. Key resistance
approaching though. You can see this is
a pivot high back here from May of 2025.
That's at a 101.97. Beyond that at
102.86 is a key fib level. So, I'm
anticipating the dollar to be hitting
the brakes on some of these gains in the
very very near future on this chart. Uh
matter of fact, you can see here on the
RSI, we are overbought near term, likely
due for some consolidation. A last
little push can help us tag this next
resistance level that you see drawn out
on the chart. Uh into the euro over the
US dollar on the inverse side of things
with the The being the denominator, you
can see here the value of the dollar
going up creates the value on this Euro
US dollar to go down, be oversold in the
near term down here at 24.63 on the
daily RSI. Notice, we're right here into
this pivot. We could be due for some
pausing and consolidating before we head
lower to this next level at $1.11.
That's a key next fib support level. If
I rewind the time back a little on the
charts, you can see here that also comes
into key contact with these previous
pivot highs back in the year of 2024.
All right, so I'm anticipating further
breakdown on the Euro. However, near
term, I'm anticipating this oversold
scenario to get a little bit of
reprieve, bounce, consolidate,
potentially put in a bear flag before we
drop lower on the Euro and US dollar.
The Great Britain pound doing a little
bit better than the Euro. As you see
here, the Euro was down testing the most
recent recent pivot lows. Instead, the
Great Britain pound is hanging out quite
comfortably above it. Now, it is too
oversold in the near term and due for
more consolidation before another leg
lower happens. Now, if I zoom back out,
you can see where that would occur at a
dollar and 30 cents. Now, yes, it will
still have to navigate through this low
pivot, but I'm anticipating a more solid
level of support down here to dollar 30
cents. Go back out on the chart, that
also corresponds to the low pivot and
the top end of the consolidation back
from 2024. So, that will be a solid
level of support should price continue
consolidating in this bearish manner and
take the next leg lower to come tag that
level of support. Lastly, guys, the US
dollar versus the Canadian dollar. As we
see here, guys, look at all of these
green candles. The US dollar gaining all
of that strength on the Canadian dollar.
It now, too, is in an overbought
scenario on the charts. So, we've got a
75.2 daily RSI reading with price action
on the US dollar Canadian dollar going
so much higher as I'm illustrating there
on the chart. But as you see, we can
still go much, much higher on the chart.
We do need to put in what's likely
similar to what occurred here in June,
some sideways consolidation. Preferably
for the bulls, you want to see price get
extended even more on the weekly
timeframe. We're not up here at the 70
yet on on the weekly RSI. So, you want
to see a one or two more weeks of upward
momentum, hit this $1.42 cent level, and
then start consolidating
up just beneath this level, but yet on
top of this $1.42.4
cent level. That would be the most ideal
bullish case scenario.
In that situation, it could start
balancing out the RSI, making room for
another push higher to the buck 45 level
up on the charts.
Very neat push there on the US dollar
Canadian dollar. Really all stimulated
here by this dollar push and recovery.
Tremendous recovery.
However, it is into resistance at these
pivot highs. That could create the
bullish consolidation that then would
lead to bearish consolidation on the
euro, and then lastly the more bearish
consolidation on the Great Britain
pound.
All right, guys. That wraps up today's
video on the currencies. The yields are
certainly playing an effect, but mainly
the US dollar and everything going on
over here with trying to taper the
10-year yield is really moving these
currencies into these key levels of
support that we just highlighted. All
right, guys. Thanks so much for watching
and tuning in today for the pro charts
videos. We've got a lot of these
available on our website all for free,
guys. So, sit back, make yourself comfy,
start learning more technical analysis,
view these charts, see these trend lines
so that you too can start drawing them
on your own charts, and react to them on
your own. All right, guys. Thanks again
for watching. I'm Drew Dosik here at
Verified Investing. We'll see you on the
charts next time.
>> [snorts]