The last official trading day of 2020 is in the books. The markets were still fairly active on the last day as the US Dollar Index (DXY) continues its selloff.
As predicated by price action and smart money analysis, the DXY is set to continue moving lower down to 88.89. This level was the low made back in 2018. Price is expected to reach this low as early as next week. A key facilitator of this move may be the ongoing discussions in the US Senate about the next Covid-19 relief bill.
Yesterday, price action analysis predicted that AUDUSD was ready to launch and it rightfully did. The pair is currently up +50 pips from the original entry point and that is a substantial move given the circumstances. Traders are hoping for a possible retracement to occur to gain entry long next week.
As chaotic of year it has been, traders all around the world have earned valuable experience. Traders know now what it is like to trade during a pandemic, and there are sure to be more in the future. As vaccinations roll around, traders and investors alike look forward to a more stable trading year in 2021. Happy New Year traders!
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- Read yesterday’s breakdown: DXY Bullish for Now + AUDUSD Ready to Launch
