After ending last week with three consecutive selling days, the Dollar has opened up this week with a bullish response. It’s tough to say if this is here to stay, or if more downside is on the way.
After opening bullish last week, the Dollar started a sharp path down to 91.600. Once again, this Monday morning the Dollar has opened bullish and seems far more eager to move higher. The only issue is the Dollar has to close bullish above the previous high at 91.950. If it doesn’t, the price can most certainly head lower.
The majors naturally will follow the footsteps of the DXY, and to start the week, many of them have dipped slightly. Pairs such as EURUSD and GBPUSD are showing a possible creation of a short-term downtrend. The only issue with trading anything long-term is the Dollar’s lack of bullishness. More price action is needed for a suitable trade setup.
Like many trading weeks, this week has its fair share of fundamental news. The US retail sales data and FOMC rate statement are just a few. These two events will be crucial in determining the trajectory of the Dollar and the major pairs.