More Selling of the US Dollar
More selling of the US dollar continues across pairs. Bearish pressure builds steadily. This reflects shifting sentiment. Traders watch for continuation or exhaustion.
Despite it being a holiday across most of Europe for Ascension Day – it’s quite lively out there at the moment. We’ve also just had an unscheduled comments from Mark Carney (not shown on Forex Factory), but came up on Forex Live feed. Greek Fin Min Varoufakis also speaking & even mentioning the word ‘reform’.
Meanwhile on the charts it’s been more selling of USD which is propelling euro & gbp higher with volatility candles on faster time frames. For cable 1.5788 is a key level being tested up to and including the daily chart. Have reading how a lot of traders are looking to short cable since it went over 1.5550, but it’s just not co-operating & the principle reason is the USD which continues to be sold off.
It’s only in the EUR/GBP that we have seen some serious GBP selling.
Monitoring Flows
This is an aspect of forex trading David & I will be covering in tomorrow’s forex webinars – the importance of monitoring the flows into (or out of) a currency via a cross section of its pairs. This can help to determine, not only market sentiment towards the currency in question, but also whether that sentiment is unanimous and in addition how as traders we need to be aware how mixed market messages can hamper our trades. All the more reason for considering a currency across its related pairs, using some kind of currency matrix.
Volume Price Analysis Insights
Volume price analysis (VPA) confirms the selling. High volume on down candles shows conviction. Low volume bounces signal weakness. Quantum currency strength indicator ranks USD low relative to majors.
Trading Implications
USD selling favors short dollar positions. Watch USD/JPY or EUR/USD for momentum. Avoid counter-trend longs without reversal volume. Anna Coulling’s VPA approach with Quantum tools spots distribution early.
More USD selling creates opportunities. Quantum indicators on MT5 or NinjaTrader make navigating weakness reliable. Stay aligned with volume for confident trades.
The Role of the US Dollar in Global Markets
The US dollar (USD) is the world’s dominant currency. It plays a central role in international finance, trade, and investment. No other currency comes close. This status gives USD unique influence. Forex traders watch it closely. Volume price analysis (VPA) helps navigate its moves.
World Reserve Currency
The USD is the primary global reserve currency. Central banks hold ~59% of reserves in dollars (as of 2026). This demand supports strength. Countries need USD for trade and debt. It creates constant buying pressure.
Pricing International Trade and Commodities
Most global trade invoices in USD. Oil (petrodollar system) and many commodities price in dollars. This forces buyers to acquire USD. Emerging markets borrow in USD. Weak local currency raises debt costs.
Safe-Haven Status
In crises, investors flock to USD. It’s seen as stable and liquid. Risk-off events (equities drop, geopolitics) boost demand. USD strengthens vs majors. VPA confirms—high volume rallies show conviction.
Federal Reserve Influence
The Fed controls USD supply through rates and policy. Hikes strengthen dollar (higher yields attract capital). Cuts weaken it. Global markets react—USD moves ripple everywhere.
Impact on Forex and Other Markets
USD strength pressures commodity currencies (AUD, CAD). It hurts emerging markets (debt costs rise). Weak USD boosts risk assets (stocks, gold). Quantum currency strength indicator ranks USD live. This shows relational dominance.
VPA reveals intent—high volume USD moves confirm sentiment. Quantum tools on MT5 or NinjaTrader make tracking it reliable.
The US dollar’s role shapes global finance. It’s reserve, trade, and safe-haven currency. Understand its drivers for better trading decisions. VPA with Quantum indicators adds the edge.
By Anna Coulling
Creator of Volume Price Analysis