Forex technical analysis: Dollar bias remains bullish after profit-taking pullback

The US dollar has strengthened against all major currencies this week. Today, however, the greenback is retreating against most as traders lock in profits and oil prices fall. This retreat gives other currencies some reprieve, but it has not altered the technical outlook. For most pairs I monitor, the charts still favour the dollar.

So what should forex traders focus on as this week ends and a new one starts?

The following five currency pairs are examined:

• EURUSD
• USDJPY
• GBPUSD
• USDCHF
• USDCAD

For each pair, I outline the current bias, the levels that would reverse that bias, and the next targets if the current trend continues. Those levels help traders gauge whether today's dollar weakness is a temporary pullback or the beginning of a larger move.

There is an important lesson in such preparation. Trading does not start when price hits a level. The work is done beforehand, when you decide what to look for if it arrives.

The best traders anticipate because they have prepared for multiple outcomes. They know where buyers or sellers have previously stepped in. They understand which levels need to hold for the current bias to stay intact. And they know what would make them alter their view. When price reaches one of those levels, they can assess the reaction rather than making a rushed decision in the moment.

That does not mean predicting where each pair will trade next week. It means having a plan: if this level holds, what is the next target? If it breaks, where does the bias shift? The market will decide. Our job is to be ready to respond when it does.

The levels across all five pairs are outlined so traders can finish this week with a clearer view of the risks and prepare for the opportunities ahead.