The US Dollar Index (DXY) has started to consolidate after reaching the 90.000 psychological level. The long-term trend is still down, so we expect further downside this week.
Price action traders entered GBPUSD longs last Friday and are currently up +100 pips of profit. Further upside is to be expected as today’s daily closure will most likely close as a hammer. Traders are expecting a minor pullback at 1.41500, and so this would be a wise area to secure some profits.
Much of the majors have yet to take advantage of the weaker Dollar and EURUSD is no different. This week price was able to go to the top of the hourly range. If price can close bullish above this range, price action traders may explore longs. Traders will be looking to target this year’s high that was made at the start of the year.
Later this evening we will have the release of the New Zealand monetary policy. Forecasts have the rate staying at the current rate of 0.25%. Any change or surprises could cause increased volatility in the NZD pairs.
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