Dollar bears continue to pile on as price approaches 92.000. As a result, traders are gearing up to long both EURUSD and GBPUSD.
After clearing last week’s low, the US Dollar Index (DXY) retraced back up to retest a crucial zone near 92.750. Price was able to reject this zone and revert the price down lower. Bears are currently in control and have their eyes set on the 92.000 psychological level as their next target.
With a bearish outlook for the Dollar, the Euro looks to edge higher. During the London session, the price was able to take out the previous two lower highs created on the four-hour time frame. This should signal a trend reversal if today’s daily can close as a new higher high. GBPUSD needs to break above 1.39000 before longs can be entered.
Tomorrow is the FOMC meeting minutes and so far the Fed has only hinted at possibly reeling back their quantitative easing. Monetary policy has remained the same since the start of the pandemic but may change as the pandemic nears an end and as inflation continues to rise.
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