Bulls continue to dominate bears as the Dollar sets out to reach July’s high. With bearish price action seen on GBPUSD, traders are entering short for GBPUSD.
The US Dollar Index (DXY) has continued building on the momentum gained on last Friday’s NFP report. Bulls were able to close bullish on the daily for the past three days with each closure being accompanied by a new weekly high. We could see the Dollar reach 93.170 by the end of the week.
Since the Dollar has resumed its uptrend, Pound prices have started to push lower. Yesterday’s daily closure was a shooting star which is a strong indication that the price is ready to head lower. Price action traders have entered short and are eyeing July’s low of 1.35750 as a target.
Tomorrow we have the CPI inflation report for the US economy. Current forecasts are expecting a reduction in cost per goods, which could provide the Dollar some strength to combat rising inflation.
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