The Dollar starts this week off by closing bearish below 90.00 for the fourth time this month. This move has poised EURUSD to push higher and USDCHF to head lower.
With continued pressure from the bears, the US Dollar Index has once again created a new lower low on the charts. Traders can expect some fight from bulls as price sets its eyes on this year’s low. The path to this target may be choppy as the price has behaved this way for much of the downtrend.
Traders can expect EURUSD to edge higher as price was able to clear last week’s high. Traders can look for price to make a run at this year’s high near 1.23500. The inverse correlate of EURUSD is USDCHF and price action analysis determines that this pair should head lower as well.
Later this week we have the GDP release for the US which is expected to be slightly better than the previous release. If this holds, traders could see the Dollar hit a slight detour on its way to this year’s low.
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- Read yesterday’s breakdown: Markets Moving Choppy But USDCHF and USDCAD Should Drop
