After a bearish week last week and starting this week on the same note, US Dollar bulls are showing some fight. Bitcoin is also set to push higher after creating the latest higher low.
Despite Powell’s harsh comments about the US economy, the Dollar was still able to create a new high for the week. More importantly, the DXY was able to close bullish above 91.950. Since midday today, the price has pulled back some, but this may just be the new higher low forming. Next Monday’s price action will let traders know if the bullishness is here to stay or not.
Bitcoin traders are in a prime position to enter long as the price was able to print a hammer on the latest higher low. Typically, a hammer on a pullback is a good sign for further upside. Two of this week’s daily closures were hammers and with the all-time high just a stone’s throw away, a push-up is highly likely.
A fairly common sentiment shared among traders this week was that it lacked any true action. There were glimpses during Powell’s speech or the retail sales data, but that’s about it. With the Dollar looking to edge higher, traders should expect next week to be more eventful.
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- Read yesterday’s breakdown: Dollar Slips After FOMC, What’s Next?
