After solid job numbers and a stimulus bill finally decided upon, the US Dollar is thriving and is officially reversing to the upside.
As a result of the Dollar reaching new yearly highs, EURUSD is set to visit pre-pandemic levels. Price had officially started its downtrend during the last week of February. Since then, price action has continuously created lower highs and lower lows. Price action traders will enter short after today’s daily closure.
In addition to shorting EURUSD, price action traders are looking to go long for USDCHF. This pair broke out its consolidation zone and has created new highs since then. Traders will be looking to target the highs made back in May 2020. There is also an inverse correlation between EURUSD and USDCHF which should be further confirmation for both trades.
Another trade that traders are looking at is longs for US Oil. Price has pushed above $65 per barrel and is now looking at 2018’s high as the next target. Last week there were doubts about whether the Dollar was reversing or simply retracing, the doubts have been answered. With more fundamentals on the way this week, the Dollar could really start to fly.
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- Read yesterday’s breakdown: USDCHF and US Oil Ready to Move Higher
