The Dollar is expected to continue its bearish sentiment from last week as the Thprice eyes 92.500. Meanwhile, similar to NZDUSD, AUDUSD is looking to fill out its range.
The US Dollar Index (DXY) spent 80% of last week under pressure bearish. Friday’s candle was also a bearish engulfing candle which also hints at lower prices. Based on the 4hr time frame, traders can expect to visit 92.500 as price retested and rejected a key zone near 92.850.
With a bearish Dollar being more and more likely, traders could expect further profits for NZDUSD longs. As NZDUSD continues to climb, AUDUSD is starting to lag higher. If the price can close bullish above 0.73150, traders can expect a rally to the range high near 0.74150. Both long positions for NZDUSD and AUDUSD will feed off each other via correlation.
As a new month approaches us, traders will shift their focus on the Non-Farm Payroll release. Current forecasts are bullish as unemployment is set to drop to 5.2% with the addition of 750,000 jobs added. A result on par with this forecast should provide the Dollar a lift back above 92.850.
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- Read our previous blog article: USDCAD Longs as Dollar Bulls Attempt a Rally at 92.850