eurusd outlook, page-3

G'day ynot, the DXY is facing resistance at 7850 atm. If it fails to break that level then the EURUSD should bounce but if it breaks that then its possibly looking at 8100 imo and that would support the EURUSD breakdown to the 1.2870 level because the last time the DXY was at 8100 coincides with the last EURUSD low at 1.2870 in January.

I wouldn't want to draw a direct link to the AUDUSD. Generally speaking of course if the USD gains strength the AUD will retreat & vice versa, but there is a very strong influence on the AUD by Asia and our commodity trade, RBA policy, local economic factors, etc and any or all of those could affect the correlation to the DXY - remember the DXY doesn't include the AUD.

Hope that helps.

Cheers, Sharks.