After a bullish start to the week, the US Dollar Index (DXY) has found itself down -0.38% for the day. The daily closed as a shooting star, which may hint at further upside moves for the majors.
The high of the week for the DXY was just short of 93.450. Since then the price has retraced a considerable amount to the midweek low of 92.850. For those that are looking to short the Dollar, a break below 92.600 on the daily time frame could send the Dollar back down to 92.000.
With the Dollar ending the week off bearish, traders can take advantage by buying certain majors. For example, GBPUSD had recently dropped out of a consolidation zone but was able to close bullish within it earlier today. This could pave the way for a long to the range high on the daily time frame. Other pairs such as AUDUSD and XAUUSD show similar trades as well.
With the Non-Farm Payroll release still looming, it is hard to say whether the Dollar will stay bearish or continue its bullish ways. The only way to know is to observe the results and the market reaction. It is fairly challenging to accurately predict the NFP numbers, so it’s best practice to not trade the event.