As forecasted, the US Dollar Index has headed lower after clearing this week’s low. Traders can expect further weakness for the Dollar throughout this week.
The signs of the Dollar’s demise were present last Friday. In addition to the bullish signs shown by the Pound, price action traders entered long for GBPUSD. Since entry, this trade is already up +50 pips. Further upside should be expected as the week goes on.
Another pair that has shown signs of wanting to move higher is NZDJPY. Price has consistently cleared previous highs and is showing zero willingness to go lower. Last Friday’s daily closure was enough confirmation to enter. The pair has pulled back today, but candlestick analysis indicates that a next leg up is due.
The fundamental schedule for this week contains monetary policy for the Pound, the New Zealand Dollar as well as the US Dollar. This translates to increased volatility in the markets and accelerated price action.
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- Read yesterday’s breakdown: GBPUSD and NZDJPY Swing Longs Active For Next Week!