The Dollar is most likely to continue its bearish trend this week as the price rests on the key 92.00 psychological level. With that in mind, traders can expect the Euro and Pound to rebound higher for the time being.
After a bullish March, the DXY has spent the entirety of April in a bearish manner. Price has been able to consistently create new lower highs and lower lows. Last week’s low was created right at 92.00 and price has once again revisited that level this week. A bearish break below this level on the higher time frames should lead the price to 91.400.
With a bearish tone for the Dollar, many traders can look for the majors to recover some of March’s losses against the Dollar. Traders can look to long EURUSD once the price clears last week’s high at 1.19250. A similar setup exists for GBPUSD which can be bought if the price is able to clear 1.38000. Both pairs require these closures to occur on the higher time frames.
Almost every single day this week has a high-impact news event like the US CPI and Sales data or the Australian unemployment data. Traders can expect more movement than usual during the midweek as a result.