After yesterday’s positive CPI news, the US Dollar Index (DXY) has found itself stuck below 90.850. Additionally, the crypto markets are also in a slumber as Bitcoin finds itself below 50,000.
The Dollar had a great trading day yesterday as the price was able to clear numerous lower highs after the release of positive inflation data. Since then, the index has found itself unable to close bullish above 90.850. Traders are waiting for price action to either commit to rejecting and heading lower or for a push higher to 91.400.
Bitcoin and several other popular cryptos such as Ethereum are down to start May. Elon Musk’s comments about Tesla not accepting Bitcoin anymore certainly did not help the cause either. A weekly bearish closure below 50,000 could point to a further move down to 40,000.
Other than yesterday’s news release, this week’s volume has been fairly low as the Dollar has spent the majority of it in a sideways fashion. The best advice for traders in this instance is to be patient and wait for a more concrete move.
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- Read yesterday’s breakdown: DXY Consolidates, Push Needed for AUDUSD and Gold Longs
