The markets have for the most part spent much of May in disarray. Despite the erratic behavior of the Dollar, both USDCHF and USDCAD should drop next week.
After the Dollar created a low at the start of the week near 89.700. After which price tried a desperate rally to reach above 90.00, which was cut short by bears. Bears were able to take price back down to this week’s low, but once again buyers pushed price higher.
Although the bulls and bears are playing a tug-of-war to determine the Dollar’s destiny, the long-term technical and fundamental analysis points to a bearish Dollar. For this reason, both USDCHF and USDCAD have continued to drop regardless of the DXY. Traders should expect more sells for these pairs next week.
Next week may provide more direction as the month of May comes to a close. With more nations revealing their plans to open up, traders could expect key economic indicators like unemployment to rebound. Thus, a technical and fundamental combination of analysis may prove more successful than one or the other.
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