Today marks the third straight bullish day for the US Dollar Index (DXY) suggesting the price is officially reversing higher. As a result, both Gold and AUDUSD shorts should be explored next week.
After spending almost the past two months in indecision, Dollar bulls have finally won the battle against the bears. In just three days this week, the DXY was able to clear multiple lower highs from the previous downtrend. The next likely target for the Dollar is this year’s high at 93.400. This could be attained by the end of the month.
Both Gold and AUDUSD have already responded to the recent Dollar strength as both pairs went on to make new quarterly lows this week. Gold has brought in over +400 pips of profit for price action traders. AUDUSD is the next pair to be entered short next, as long as Dollar bulls can continue their rally.
Patience in trading will almost always be awarded. Many traders that forced trades during the recent Dollar consolidation may be kicking themselves as this week’s price action provided a bounty of profitable trade setups. It always pays to be a sniper in the markets rather than a machine gun.
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- Read yesterday’s breakdown: Gold Trade Up +400 Pips as Dollar Bulls Pile On
