As expected, the US Dollar Index took a tumble and went as low as 90.170 for the day. Price action analysis forecasts further Dollar weakness for next week.
As a result of the weakening Dollar, the Pound has started to resume its previous uptrend. Traders have entered long with the final target being the highs made in 2018. In addition to technical factors backing this trade, the Pound had positive manufacturing data which should also give it a fundamental boost.
Another setup that is ready to resume its uptrend is NZDJPY. This pair had a respectable uptrend to start the year, but in recent weeks it began to range. This week price was able to clear 2019’s high and price action on the smaller timeframes is hinting at further gains. Traders are eyeing the high made in 2018 as a final target.
Price action was fairly slow this week as we had a four-day trading week. Many pairs showed the most volatility today during the release of the Euro and Pound manufacturing data. The Dollar also had manufacturing data that came right on par with the forecast. Based on technical analysis, we should see further Dollar weakness next week.
Directory:
- Sign up for a Free Membership.
- Login to watch full recorded webinars in our Forex Trading Room.
- Chat with our traders in the Community Discord Server.
- Read yesterday’s breakdown: US Oil Hits $62 Per Barrel + GBPUSD Longs
