Price action traders are enjoying Gold shorts as the price has taken a deep dive this week after Dollar bulls have pushed the US Dollar Index (DXY) to new quarterly highs.
Price action analysis completed yesterday on Gold provided a possible short setup. This was due to price failing to create new highs since attaining 1912 and price making continuous lower highs on the smaller time frame. At the moment traders are up +400 pips with more profits expected to come.
After consolidating and moving sideways for almost two months, the Dollar has finally convincingly picked a direction. After stalling below 90.550 for a few days, the DXY has now surged past 91.000 and is currently on its way to April’s high. The next target for the DXY is March’s high near 93.450.
With the Dollar in a strong trend again, traders will have no trouble finding suitable trade setups in the markets. This is why it’s always best practice to wait for volume to appear before executing trade ideas.
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- Read yesterday’s breakdown: Dollar Continues to Consolidate and Potential Shorts for USDCAD
