Over the weekend, the US Dollar Index (DXY) was able to close bearish below 91.400. With this move, we should expect further Dollar weakness and for USDJPY to push lower.
As a result of the weaker Dollar, GBPUSD buys from last week have extended into deep profits. Price action analysis determined that this pair was ready to push to the top of the range. Over the weekend and going into today, the price was able to move +150 pips to the upside.
The Dollar has spent the entire month selling off without any real retracements to the upside. The downtrend is strong and is still intact on the higher time frames. The next target for the DXY is the low made back in February near 90.000. We expect USDJPY to continue to head lower as a result.
Later this week we have the Bank of Canada rate statement as well as the crude oil inventories. Hopefully, these two events can provide some activity for Crude Oil as the price is stuck in consolidation without any real momentum.
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