The US Dollar Index (DXY) is wasting no time to reach 2018’s low as sellers continue to pressure the Dollar to go lower. Today many of the majors have extended their gains against the Dollar, with some being up +0.62% up for the day.
EURUSD has pushed through the weekly high of 1.21750 and is well on it’s way to the 1.23000 psychological level. Price action traders are up a modest +80 pips for this pair. The positive European manufacturing data along with the $900 billion stimulus package passed by congress have contributed to the gains. Price is expected to retrace back to 1,22500 before it’s next leg up.
AUDUSD is enjoying the bearish Dollar as well as the pair extends its gains to +0.62% for the day. Price action traders are approaching +100 pips of profit as the second target of 0.76400 was achieved earlier today. Traders can expect a minor pullback from this price point before price extends itself higher.
The US Dollar willingly gave traders an early Christmas present with its rapid depreciation this week. Traders can expect to see these gains carry over into tomorrow. It would be logical to close out of all open positions before Friday’s market closure as we head into the Holidays next week.
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