In today’s live trading session, we went over our swing trade for Gold and how the DXY has reacted to the vaccines for Covid-19.
This morning the US Dollar Index (DXY) surged right at the open of the New York session. The index made its way back to the highs of 92.705. We are waiting to see whether price can close bullish above this level or reject, and go lower. This is an important high that needs to be cleared in order for us to take longs for the Dollar. We believe this move was based on the positive vaccine trials as well as positive manufacturing PMI data.
In light of the DXY surging, Gold has found itself looking to go lower. Our key level of 1845 has finally been broken after three months of waiting. We are waiting for today’s daily closure before we enter our swing short. Gold is under an immense amount of pressure under the Biden administration as well as clinical trials showing promise in a Covid-19 vaccine.
In addition to the aforementioned setups, we also have our eye on intraday shorts for AUDUSD and EURUSD. All these setups depend on how the DXY fares for the remainder of the day. We will adjust our biases during tomorrow’s session if need be. As always, be safe and trade responsibly!
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