The Dollar is in a tough spot as sellers continue to force the index lower. A possible area where the DXY can rebound is 91.900. If it fails to do this, we can see many majors start to rise once again.
After the passing of the 1.9 trillion dollar stimulus package, the Dollar has done a complete 180 in terms of direction. Price is now down -0.18% for the day and more downside is to be expected. The only way price can start a rebound is if the price can close bullish above 91.90. Otherwise, a selloff to 91.60 is imminent.
With the Dollar slipping, many of the majors are starting to rise. After starting the month off by being dominated by the Dollar, pairs like EURUSD and GBPUSD are starting to find some upside momentum. In the grand scheme of things, many of these pushes higher can be seen as retracements and nothing more. Although, this depends on how much lower the Dollar goes.
Tomorrow’s ECB statement could play a factor in just how high or low EURUSD goes. To a lesser degree, it will also affect how the DXY will behave. Things can get messy for the Dollar before it truly reclaims its throne.
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