In today’s live trading session, we went over the ranging US Dollar Index (DXY), and a trade setup for AUDUSD.
As of this morning, the DXY has spent the majority of its time stuck in a range between 91.000 and 90.75. During yesterday’s session, we expected the price to head lower down to 90.52. This move would have provided entries into our trade setups for EURUSD, AUDUSD, and NZDUSD. Unfortunately, we will have to wait for the DXY to gain some momentum. Despite all of this, we are still bearish in the short and long term for the Dollar.
While the DXY primes to go lower, we see one major priming to go higher. Unlike some of the other pairs, AUDUSD is giving indications of a next leg up. Yesterday’s daily candle was a hammer, and we typically use these candles to enter after a pullback. We will be waiting for confirmation on the four-hour time frame before we enter long.
Today is a bank holiday in Europe so that may explain some of the consolidation seen in the markets. We are hoping that once the Japan session rolls around, things start to pick up. As always, be safe and trade responsibly!