In today’s live trading session, we went over the current status of the US Dollar Index (DXY) and the Forex majors.
Last week the media announced that Joe Biden had won the 2020 US Election. This announcement resulted in the selling of the US Dollar Index. However, this morning, Pfizer has come to the rescue. This morning Pfizer announced that its vaccine was 90% effective at preventing Coronavirus. The US Dollar Index had an immediate reaction to this announcement and is currently up 0.70% for the day.
Many of the major currency pairs have also reacted to this morning’s news. Currently, EURUSD is down 0.50% and it seems that more downside is on the way. We feel that if the price can clear 1.17500, the Euro can extend its losses to 1.16150. We then saw XAUUSD (Gold) melt almost 1070 pips since this morning. The news of a potential vaccine minimizes uncertainty, something which Gold needs to thrive.
We had a bearish bias for the US Dollar last week, but given this new information, we may have to adjust our bias. We will let the rest of the day play out to see how exactly the markets shape up. As always, be safe and trade responsibly!
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