After retesting and rejecting the previous low of 90.700, the US Dollar Index (DXY) is set to head lower. As a result, the majors, as well as commodities like Gold and Ethereum, should gain on the Dollar.
Although the US Dollar is headed lower as expected, price is moving in a sideways fashion. This is ultimately dragging on the inevitable visit to 90.000. Today price was able to muster up enough bullish power to retest 90.700, but bears were able to reject this level. This hints at further Dollar weakness in the coming days.
Forex majors such as EURUSD are already starting to revert to the upside as Dollar bulls die down. In addition, Gold is looking to attempt a range fill to the top of the daily range near 1796. Ethereum continues to push higher with the key 3000 psychological level as being a near-term target.
With the Dollar moving in a sideways fashion, this week was fairly lackluster in terms of trending setups. There was a fair share of fundamental news as well, but often this news can lead to long bouts of consolidation before any major moves. Next week should be far more impressive in terms of volatility.
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- Read yesterday’s breakdown: Fed Keeps Stimulus Unchanged + Dollar Pushes Lower