The session movements are currently very pronounced, but they all trend in a single direction. The dollar is losing its appeal as it continues to be heavily sold. EUR/USD is now up 1.9% at 1.1060, while USD/JPY has dropped 1.9% to 146.43, marking its lowest point since October.
This is a troubling time for the dollar, as it has resulted in a significant technical breakout.
The EUR/USD has surged to its highest point since October and has successfully broken above the 1.1000 threshold. Additionally, USD/CHF is up over 2% to 0.8620, having breached support around 0.8757 at its lowest mark since November.
Moreover, USD/JPY has also dropped below its March low, hitting the lowest level since last October.
USD/JPY Daily Chart
At this juncture, as they say, it’s best to avoid trying to catch a falling knife. Currently, emotions and psychological factors are heavily influencing trading decisions. Now is not the moment to stand against such a runaway trend.
