Dollar bulls are facing a tough task to fend off bears as they push the US Dollar Index (DXY) lower. Meanwhile, traders are setting up to take swing shorts for AUDUSD.
After creating a new high for the quarter, the Dollar saw immense pressure applied by bears that brought the price down -0.35% for the day. The daily uptrend is still valid but can be put in jeopardy if bears can take price back down to 92.000. Bears have created a downtrend on the smaller time frame, which allows for intraday shorts for the Dollar.
Despite a weaker Dollar in the short term, AUDUSD has continued to drop lower. Price started a downtrend on the daily back in May of this year and has consistently made lower highs and lower lows. The next short-term target for price is the high for 2020. The long-term swing target is the low for 2020.
Tomorrow’s Canadian unemployment report will provide more clarity for CAD pairs such as USDCAD and CADCHF. Both of which have trade setups developing on the daily time frame. It would be best practice to observe the results and then assess possible trade opportunities.
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