As the trading week progresses, the US Dollar Index (DXY) is finding itself some support at 90.00. Pending trade setups for AUDUSD and Gold will only become active once the Dollar pushes below this level and respects the long-term downtrend.
Although the DXY has reached below 90.00 this week, the price was not able to close bearish on the 4hr, 8hr, or daily timeframe. Since 90.00 is a key psychological level and a near-term swing long, bulls will naturally be fighting in this area. Due to both technical and fundamental pressures, price should eventually break this level and move lower.
Despite the recent struggles in the Dollar, both AUDUSD and Gold are setting up for longs. AUDUSD has started and maintained an uptrend since March. For longs to become active, the price needs to close bullish above this week’s high. The same goes for Gold which has been on an uptrend since the start of March.
With the slow-down of the DXY, the Forex, CFDs, and Crypto markets are all showing signs of laboring. In these instances, it’s best for traders to wait for more volume in the index to ensure favorable trading conditions have returned.
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- Read yesterday’s breakdown: DXY at 90.00 + USDCAD and USDJPY Shorts Pending
