Price action traders are up almost +200 pips of profit after entering short for Gold yesterday. Despite Powell’s optimistic comments, bears have regained control of the Dollar.
Prior to the FOMC rate statement, Gold was presenting bearish technical indicators. Price has been on a downtrend since the start of the month and had recently completed the creation of a lower high. Today’s daily candle will most likely close as a shooting star, suggesting further shorts are on the way.
The Dollar has flipped the script on traders after a notably bullish trading day yesterday. Price is down 0.40% for the day as bulls could not get past resistance at 93.430. Bears are looking to take the Dollar back down to the key support zone of 92.750. Thus, intraday Dollar shorts may be ideal.
Despite poor PMI data across the board for the Euro, EURUSD appears to be bullish to end off the trading week. This may be attributed to the sudden drop in the Dollar and this may persist into next week.
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