The US Dollar Index (DXY) was only able to stay bullish for a day before caving under the pressure from bulls. As a result, shorts for USDCHF have entered into profit.
After yesterday’s brief resurgence, the Dollar is once again on the path to move lower. Although the Dollar was able to close above 90.00, the bearish pressure from the higher timeframes was just too much for the short-term bulls. The next target in the coming weeks is 89.430.
The Dollar is likely to face future losses against the Swiss Franc as the price looks to visit February’s low near 0.88800. Price action traders were able to enter earlier yesterday and after a brief bout of drawdown, traders have achieved the first target. More profits should be expected as the Dollar continues to weaken.
Pairs like EURUSD and GBPUSD have yet to start making any major moves against the Dollar as the market awaits this Friday’s manufacturing data. If the release points to positive manufacturing data, both pairs could start new rallies to end off the month.
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