The US Dollar Index (DXY) has officially reached 90.00 which was the low made to start the new year. With further bearishness expected, traders can expect both USDCAD and USDJPY to push lower.
Since May of this year, the Dollar has begun a strong downtrend on the daily timeframe. Over the weekend price was finally able to reach the key psychological level of 90.00. A daily bearish break below this level should take the price to the 2017 low of 89.400.
With a bearish Dollar being the likely scenario, USDCAD could push down to the 2015 low of 1.19300. Similar to the DXY, this pair has also begun a downtrend back in May which has stayed solid throughout the year. USDJPY could also see further losses as the price is moving lower in a sideways fashion on the daily timeframe.
Last Friday’s NFP job report was the worst one in twelve months and that should help fight off any Dollar bulls looking to enter the markets. For now, traders should focus on catching the next segment of Dollar bearishness in the markets.
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