In today’s live trading session, we did an overview of possible setups that we could take this week. We did this by first analyzing the US Dollar Index (DXY) and then determining where the majors/minors would go.
As discussed during last Friday’s live session, we expect the US Dollar Index to break below 93.00 and head on its path to 89.00. This morning we saw that the DXY has started to fall and as a result, we have a bullish bias on virtually all of the majors against the US Dollar. Currently, we are waiting to see what EURUSD does at 1.19000. A rejection would lead to a selloff and a break above would lead to a nice swing setup to 2019 highs. In addition, we have also found two solid sell setups for USDCAD and USDCHF.
As for the minors, we were able to find a few setups as well. Last week, NZDCHF began a trend reversal to the downside. We do expect price to continue lower, as we approach phase 1 Covid-19 levels. We see the move as a promising one as the New Zealand Dollar continues to struggle against the US Dollar. The other setup we found was for EURJPY. Similar to USDJPY, we envision a selloff for this pair as the Japanese Yen regains some of its lost prowess.
The following setups are all pending and can be scraped if price action or fundamentals change. The fundamental schedule for this week is surprisingly quiet up until Friday’s Euro PMI release. We may see a very slow week ahead of us. That is fine as long as we end the week in profit. It will be very important to not rush into any setups without getting full confirmation. As always, be safe and trade responsibly!
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