This morning the US Dollar Index (DXY) has created a new high for the year near 90.00. Some of this can be attributed to the chaos that occurred at the Capitol. Also, Donald Trump has conceded the 2020 election this morning which may also have had some effect on the Dollar.
Despite the rally done by the US Dollar, many are still bearish on the index. After creating a high near 90.00, the DXY has found itself selling off in hopes of creating new lows. As a result, NZDUSD longs have become active for price action traders who look to target the high’s created in 2018. In addition, NZDJPY looks to push higher after a brief period of consolidation.
Price action analysis completed yesterday predicted that the next target for Bitcoin was 40,000. That target was achieved earlier today and traders are advised to secure their profits as price battles this key psychological level. Traders should wait for a daily bullish closure above this level to take it to the next psychological level.
Tomorrow is the first Non-Farm Payroll release of the new year. Current forecasts are predicting a slight uptick in unemployment and the addition of only 68,000 jobs. These forecasts align well with the current bearish technical outlook. Traders should be avised not to trade this event as reactions can be random and volatility can reach extremes.
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- Read yesterday’s breakdown: AUDUSD and NZDUSD Long Trade Setups + BTC to 40,000