After a bullish trend last week, the US Dollar is presenting a more bearish stance to end off the month. As a result, our traders are hunting longs for GBPUSD and NZDUSD.
The US Dollar Index (DXY) is once again bearish this summer after the price cleared this year’s high. Although creating a new high was a good sign, candlestick analysis shows that momentum was dying at that moment. Today, the Dollar has revisited 92.850 which was a key level for the past quarter. This move indicates further shorts in the short term.
As the Dollar pushes lower, many of the Forex majors are pulling back into their previous ranges. Apart from this, many pairs such as GBPUSD and NZDUSD are closing bullish within the range. This all points to a possible move back to the range high of the respective currency pairs.
Before this week, many investors were expecting the Fed to taper their current monetary policy. But the recent resurgence of Covid-19 cases has made such an expectation unlikely. Traders and investors will be keying on this week’s Jackson Hole Symposium which will reveal the next plan of action for the economy.
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