In today’s live trading session, we determined our bias for the US Dollar Index (DXY), and then we discussed trade ideas for GBPUSD and GBPAUD.
The DXY is still within the descending channel that it had formed back in September. Currently, it’s on the upward leg to create a new lower high at 93.33. For this reason, we are bullish for the Dollar to start off the week. But, the DXY has to clear last week’s high of 93.13 before going any higher. We will be sure to monitor price action at this level in case price begins to sell-off.
As for trade setups to take now, we have found two of interest. The first is a short for GBPUSD. This idea was actually identified last Friday and has become active early this morning. We are looking to enter once price clears today’s low. The other trade idea is also a short for GBPAUD. This trade mirrors GBPUSD and will only be entered if GBPUSD is entered.
This week has several monetary policy statements for nations such as the European Union, Canada, and Japan. Interest rates are set to remain the same, but if history has taught us anything, it is that the markets will still have a reaction. Let’s have a great trading week. As always, be safe and trade responsibly!
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