Since yesterday, the US Dollar Index has found itself below 90.00 for the first time since mid-December. Despite this move, intraday bullishness for the Dollar is expected.
Candlestick analysis indicates a potential rebound from 89.88 as the price has printed a hammer off a key level. A nice short-term target to the upside is 90.16. Price action analysis still favors a bearish bias for the long-term which should resume in 2021. Smart money is also bearish on the Dollar and expects price to take out December’s low this week.
While the Dollar figures itself out, one major seems more bullish than the rest. That is AUDUSD. AUDUSD is slowly but surely creeping up to this month’s high and all it needs is a slight push to begin the next leg up. Smart money traders will most likely hold off on trading this pair as they wait for AUDNZD to develop.
Traders can expect slightly more volatility tomorrow as we several low impact news releases. In comparison, so far this week we have only had one news release. Therefore, tomorrow’s fundamentals may have a slightly higher impact than usual. Ideally, traders should not be in any trades as we finish off the holidays.