As predicted, the DXY was set to fall after closing bearish below 91.00. As a result, many trades such as GBPUSD, EURUSD, and USDCAD are surging into profit.
Price action analysis yesterday predicted that the Dollar should continue to weaken and traders are targeting 90.00. The Dollar will continue to weaken before tomorrow’s CPI data and Powell’s speech at 2:00 PM EST. If there is a pullback, one can expect on near 90.40.
As a result of weakening DXY, many majors are gaining on the Dollar. EURUSD and GBPUSD have broken out of the slump that was created at the start of the year. Both pairs are targeting their respective previous highs. USDCAD provided traders with an intraday trade to the downside and is currently up +40 pips.
It’ll be interesting to see how tomorrow’s fundamentals affect the DXY. As of late, the Dollar has been rather irresponsive to fundamental data. Traders should keep this belief until the Dollar shows otherwise.