After a bullish rally to 92.750, Dollar bulls just didn’t have enough to clear this level. Instead, the Dollar is being pushed back down to 92.000 which opens up possible USDCHF shorts.
Yesterday’s daily closure for the US Dollar Index (DXY) was a bullish hammer that was highly suggestive of further upside. Instead, bears took back control during the London session. Since then, the price has been on a sharp path down, and was able to take out support at 92.400. The next target is the 92.000 psychological level.
With further Dollar bearishness expected for the remainder of the week, traders can expect USDCHF prices to take a tumble lower. This pair had a brief uptrend to end off June, but that was short-lived. Since then, price action has been creating lower highs and lower lows on the hourly. If the price can breach 0.91300, traders could short the pair to 0.90000.
There were several high-impact fundamental events today like the BoC interest rate. But with the pandemic still ongoing, many central banks are sticking to their current monetary policies. Thus, news events aren’t having as high of an impact as they once did. Maybe this Friday’s retail sales data could shake up the market for a change.
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- Read our previous blog article: US Dollar to 92.750 with USDJPY Looking to Push Higher