After starting the week off on a bearish note, the US Dollar Index is up 0.72% for the day with more upside on the way. This should provide short opportunities for the Forex majors next week.
Typically huge movements in the Dollar are seen after the Non-Farm Payroll (NFP) release on the first Fridays of each month. Today, there was no high-impact news and the Dollar has created a new for the week. With the Dollar back in the daily range, traders can expect the index to reach the range high at 91.400.
As a result, traders can expect the Forex majors such as EURUSD or GBPUSD to drop next week. Both pairs have dropped 0.78% and 0.91% today as both pairs make their way to hourly support. If the Dollar can stay bullish throughout the weekend, traders can look to short both these pairs among others.
This week had a wide variety of news ranging from monetary policy to GDP. Whether these events cause favorable trading conditions is hit and miss as sometimes you may have increased price movement and other times it’s fairly consolidated. Next week should have far more price action for traders to trade.
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- Read yesterday’s breakdown: Gold and Ethereum Longs With Dollar Stuck in a Limbo