In today’s live trading session, we went over the US Dollar Index and as a result, have found trade setups for EURUSD and GBPUSD.
This morning the US Dollar Index surged to the upside, with the index being up 0.76% for the day. Based on technical analysis, we see 94.00 as the next target. This move may be due to the Fed hinting at possible rate hikes if the unemployment rate continues to fall. Based on this assessment, we have a bullish bias for the US Dollar this week.
For the rest of the session, we focused on setups that would let us take advantage of the surging US Dollar. We were able to find two viable trades. They are shorts for EURUSD and GBPUSD. Both pairs have printed shooting stars on the higher timeframes, suggesting a possible reversal. We envision price is obligated to fill out the daily trading range and we are awaiting price action to confirm entry.
Virtually every day of this week has a high impact fundamental release, some days have as many as 4 of such events. We are in for a great, volatile trading week. We may be able to get entry into our trades later today during the Japan or Australian session. As always, be safe and trade responsibly!
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