Dollar Retraces + Gold Longs Pending

The US Dollar Index (DXY) is expected to revisit 91.400 after the price had easily broken this level earlier in the week. While that move pans out, Gold (XAUUSD) is setting up for a potential long.

This week marks the third straight week that the DXY is being pressured by bears in the market. As for the higher time frames, the Dollar is set to visit 90.000 in the coming weeks. In the meantime, traders could see the pair go back to 91.400 for a potential retest before heading lower.

With further Dollar weakness expected, traders can look to Gold to push higher. Right now price is resting above 1775 which was the low made back in February. Price has used this low as a place to rebound from in the past, so traders can expect bullishness at this level.

Tomorrow is the Bank of Canada rate statement and current forecasts have the rates remaining unchanged. The statement may however provide the volatility that USDCAD desperately needs.