After a week of consolidation, the Dollar is finally moving lower as it prints the lowest GDP in two years. As a result of this, traders could look at EURUSD extending higher.
This morning’s US GDP came out at a two-year low of 2.0% versus the forecast of 2.6%. This result is shockingly low and it can be attributed to rising inflation levels globally. As a consequence, the Dollar has fallen 0.52% for the day is now looking to revisit 92.850.
With a confirmed bearish bias for the Dollar, traders can now look to long EURUSD. This pair had attempted a selloff to start the month, but bears weren’t able to drive price past monthly support. Price action is now bullish on this pair and 1.19000 seems like a likely target.
As inflation increases globally and the world continues to battle the ongoing pandemic, the safe-haven currencies are starting to see more activity. Traders could see pairs like USDJPY and USDCHF fall significantly lower in the next few months.
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