As the US Dollar Index (DXY) makes its way down to 90.00, traders are securing profits from trades against the Dollar.
Price action analysis indicates that the DXY will have a small rebound from 90.40 before the price continues its path down to 90.00. At this point, price action traders have secured about 50% of their profits for their EURUSD, GBPUSD, and USDCAD trades. Out of all the majors, GBPUSD should see further upside as the price targets 2018’s high.
Powell’s comments and the mixed inflation data had very little effect on the Dollar. As a result, the bearish bias for the Dollar still stands. Traders may look to USDJPY for a possible trade. This pair has created some minor support on the hourly, but a break of this support should continue the previous downtrend.
In addition, swing trades for US Oil are continued to be held by traders are price slowly makes its way up. Further Dollar weakness may accelerate this push up to $65 per barrel.
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- Read yesterday’s breakdown: GBPUSD, EURUSD and USDCAD in Profit
