After an eventful week in Forex markets last week, this week seems to be just as promising. The Dollar is looking to head lower and several key fundamental events throughout the week should provide volatility and price movement.
The US Dollar Index (DXY) is set to face pressure once again from bears in the market. Price was able to retest 91.400 one last time on Friday, before ultimately rejecting it over the weekend. Since then, the price has closed bearish below last week’s low. More downside should be expected for the index.
With further Dollar weakness expected, many of the majors should theoretically gain on the Dollar. EURUSD seems to be a pair that is ready for the next leg up as the pair has completed a retracement lower. Candlestick analysis indicates that this retracement should be followed by a push higher.
The BOJ report, the FOMC statement, and US GDP are just a few of the major financial releases that are set to take place this week. Traders should incorporate these reports into their trading but also be mindful of the added volatility that they bring.
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- Read yesterday’s breakdown: Major Longs For Next with Weaker Dollar Expected
