In today’s live trading session, we determined our bias for the US Dollar Index (DXY), and then we found trade setups for EURUSD and GBPUSD.
This morning we saw the DXY slip 0.38% to the downside and then hit the key level of 93.40. At this point, we do expect a small retracement back up, before the price continues its path down. We have been bearish for the US Dollar for much of the quarter, but the POTUS getting Covid-19 has added another reason for a weakening Dollar. Our short-term target is 93.00.
In light of the bearish DXY, we have determined a bullish bias for the major currency pairs. We have found two promising long setups for EURUSD and GBPUSD. Our EURUSD trade has a target of 1.19000, but we will only enter this trade if price action can satisfy our entry criteria. We have a similar long setup for GBPUSD. If we were to enter, we are looking at a target of 1.31400.
As opposed to last week, this week only has a few key fundamentals events to look out for. This tends to be the most ideal situation as a few key events here and there provide us the volatility we need to get our trade setups moving. Let’s have a great trading week. As always, be safe and trade responsibly!