The US Dollar Index (DXY) is once again stuck in its consolidated ways and that has been the sentiment for almost two months now. Despite this, traders may have a short setup for USDCAD.
For the third straight day this week, the Dollar is stuck below 90.550. Price on the H4 timeframe is stuck in a small range of fewer than 20 points. Traders need to see the price break above 90.850 for potential Dollar longs and a break below 90.000 for potential Dollar shorts.
Traders should ultimately wait for the Dollar to make a move but could look at an early entry for USDCAD shorts. This should only occur if today’s daily closure could close as a shooting star off resistance near 1.22000. If this does not occur, the price could make an impulsive move higher.
Sooner rather than later, the Dollar will finally pick a direction in which it wants to go. This move should be awaited as the current bias is mixed and there’s a 50/50 chance of the DXY going in any direction.
Directory:
- Sign up for a Free Membership.
- Login to watch full recorded webinars in our Forex Trading Room.
- Chat with our traders in the Community Discord Server.
- Read yesterday’s breakdown: CADCHF Shorts Entered and US Oil Hits +200 Pips of Profit
