In today’s live trading session, we went over the bearish US Dollar Index (DXY) and then gave an update on our EURUSD long trade.
As expected, the DXY has continued its bearish momentum as price action continues to respect the current downtrend. We are moments away from our short-term target of 91. This morning’s ADP job numbers were less than forecasted and had provided the kick that the DXY needed. We do expect a minor bounce from 91, but the price should eventually break this level nonetheless.
As a result of a weaker Dollar, many majors are priming for rallies to the upside. Some currencies are more inclined to push higher than others. EURUSD is ready to push above the high created back in 2017. We are waiting for confirmation on the 4hr time frame, before entering. The Pound is having a harder time pushing higher, as it deals with Brexit discussions.
Concerning the weaker US Dollar, we should also see further upside for our NZDCAD swing trade. This Friday’s NFP employment numbers will be the deciding factor of whether or not the Dollar can stay afloat. As always, be safe and trade responsibly!
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