In today’s live trading session, we went over the US Dollar Index (DXY) and why we may look at shorting EURUSD.
During yesterday’s session, we believed that the DXY will eventually get down to last week’s low of 90.52. However, the Dollar had other plans. Instead of moving lower, the Dollar has gotten itself stuck in a range between 90.52 and 91.00. This morning price had broken above 91.00, which provides a possible rally to 91.25.
Based on this short-term Dollar strength, we have shifted our bias from long to short for EURUSD. We still believe from the higher timeframes that this pair will eventually go higher, but in the short-term, we may have an intraday short on our hands. We will wait for today’s daily candle closure before entering the trade. We are targeting the previous three highs as take profit targets.
Tomorrow we have the European Union economic summit along with the ECB press conference. These events will be critical in determining where EURUSD goes, but also pairs such as EURJPY, and EURNZD. As always, be safe and trade responsibly!