After a surge to open up the trading week, the US Dollar Index has retraced considerably. Currently, price is resting at 90.900 with price action suggesting another push to the upside.
As far as technical analysis is concerned, the US Dollar showed virtually zero signs of retracement yesterday. Price was able to print a hammer on the daily which typically signifies a push higher. However, today’s retracement may be attributed to the 1.9 trillion stimulus package that was passed by the Senate earlier today.
With the long-awaited stimulus package out of the way, the Dollar should move higher in respect to the uptrend created on the daily time frame. Traders who are looking to continue Dollar longs should look for bullish price action on the four-hour, before entering.
Tomorrow we have the release of the US CPI data which is an indicator for inflation. The current forecasts are bullish which should help the Dollar rebound if has not already.
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