Gold longs have been entered as the Dollar opened Friday with a sharp move down. A bearish trend is looking quite likely for the Dollar as the price fails to clear 93.170.
Gold started the week off with a quick trip to 1679 as bears were able to quickly snap price to this key level. This level was a support used by Gold back in March. Despite that, Gold was able to recover this morning and the price is up +1.40% for the day. This week’s weekly candle is also a bullish hammer which is suggestive of further upside.
The US Dollar Index (DXY) had a phenomenal start to the week as the price was able to attain July’s high. However, bulls were not able to continue this uptrend as they failed to close bullish above this high. Since then, a surge of bears has entered the market. The Dollar is down -0.51% which is likely to worsen next week.
Next week, traders should keep their focus on the Dollar and Forex majors as prices are moving in tandem with each other. Such a situation often brings higher probable trade setups for traders.
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- Read our previous blog article: GBPUSD Shorts Back in Play as Dollar Pushes Higher off Key Zone
