The US Dollar Index (DXY) has once again rejected 90.00 after a brief visit. With that in mind, Gold and Crude (Oil) are both looking to push higher against the weaker Dollar.
The past 4-6 weeks have been a struggle for the Dollar as the price has tried numerous times to start a reversal. Each new low has been presented by a quick impulse push-up by bulls. Each move has been shot down by the bears. Once bears break 89.700, the Dollar could see quick losses to the downside.
At the moment, Gold is attempting to close bullish above 1912. This level is the high made in May. If bulls can close bullish above this level on the daily, Gold will naturally be magnetized to this year’s high at 1956. Oil is looking to do the same as the price has pushed above this year’s high.
Tomorrow we will have the ADP job number report followed by the Non-Farm Payroll (NFP) release on Friday. Much of the Dollar’s fundamental outlook will be determined by the next two days. As the nation starts to reopen, these job numbers will be of grave importance in determining the Dollar’s next move.
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- Read yesterday’s breakdown: Crude Oil Longs Pending + Dollar Looks to Revisit 90.00