The Dollar is facing heavy pressure from bears after creating a new high for the week. Meanwhile, Bitcoin has made an impulse move higher that may provide traders with shorts back down to 30,000.
After creating a new high near 93.200, the US Dollar Index (DXY) is facing immense bearish pressure as the price heads to 92.750. If bulls were going to step in at a specific price level, it would most likely be this one. A failure for bulls to provide support here could lead the Dollar back down to 92.400.
After breaking 30,000, Bitcoin bulls were able to push the price back above 32,000 momentarily. On the hourly time frame, traders can spot a shooting star after this sudden move. This area of price has provided short opportunities in the past, and with a long-term bearish outlook, Bitcoin can go back to 30,000.
Tomorrow is the ECB rate statement and press conference, an event all traders should pay close attention to. Some analysts predict the ECB will make tweaks to its current monetary policy to keep its 2% inflation target. Any changes could send ripples across all markets and provide unexpected volatility.
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- Read our previous blog article: AUDUSD Continues to Fall as NZDUSD Shorts Gear for Entry