After a few days of bouncing between 90.850 and 91.400, the US Dollar Index is set to head lower next week. As a result, traders should focus on longs for the major currency pairs.
To start the week, the Dollar made a deliberate push below 91.400. This was a significant move as this increased the certainty of further bearishness. However, most of the midweek consisted of the Dollar ranging on the hourly. Technical analysis completed today suggests the index is ready to break 90.850 and head lower.
Price action traders were able to profit from intraday longs for EURUSD and are now looking to enter long once again next week. Price should make a rally for February’s high at 1.22400. Gold should also look to push above this week’s high and make a run at 1811.
The Forex market is far easier to trade when the Dollar is trending. Although this week the Dollar had its bouts of consolidation, the overall bearish tone still made profitable trading very possible.
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- Read yesterday’s breakdown: Euro “On Crutches” and Dollar Rebounds
