After creating a range on the hourly time frame, the US Dollar Index was able to finally close bullish above 91.950. With that being said, the Forex majors should begin to head lower.
The Dollar has been quite elusive these past few weeks as price took a brief break from trending upwards. Based on today’s price action, Dollar bulls are finally back and here to stay for the time being. The first target for the US Dollar Index (DXY) is 92.500. If the price can close bullish above this level, we can see the Dollar make substantial moves to the upside.
Theoretically, as the DXY goes higher, the majors against the Dollar should head lower. Price action traders are currently eyeing potential EURUSD shorts. Traders are waiting for the price to clear this month’s low before entering short. NZDUSD is also looking to head lower as the price was easily able to clear this past December’s low.
When the Dollar is trending, trading is fun and relatively easy. When it’s not, it leaves traders scratching their heads. A trendy Dollar is a pleasant sight to see as various trade setups begin to form.
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- Read yesterday’s breakdown: DXY Back to Bearish Ways + NZDCAD Shorts?
