As the US Dollar Index (DXY) continues to climb, many of the majors such as EURUSD and NZDUSD continue to fall. Both pairs are providing great setups to the downside.
The Dollar seems to be creating a new high every day of this week. This is good news for Dollar bulls as the price was looking quite bearish to start the month. Earlier today price was able to clear November’s high of 92.800 with ease. The next target for the Dollar is 93.200 which should send many of the majors into a strong dive if achieved.
Some majors are looking far more bearish than others. EURUSD shorts is a bias that has picked up a lot of steam after the price recently cleared this month’s low. Price action analysis on the smaller time frame shows a textbook downtrend with continuous lower highs and lower lows. The same can be said about NZDUSD.
In addition to the majors, traders can expect Gold (XAUUSD) and to a lesser degree Bitcoin drop as a result of a stronger Dollar. It’ll be interesting to see if this is maintainable as Covid-19 cases continue to rise in the United States. Another lockdown may truly hamper any optimistic moves for the DXY.