After failing to bounce from 91.90, the US Dollar Index is set to fall lower. While the majors gain on the Dollar, US Oil is starting to set up for a perfect buy to $77 per barrel.
The Dollar is finding it rather hard to stay afloat despite opening bullish on Monday. Price started a respectable uptrend at the end of February, but since the passing of the stimulus package, the price has done a 180. The last line of support was 91.90, but the price was able to clear that level fairly easily. The next stop for the DXY is 91.20.
As the majors attempt to gain on the Dollar, one commodity that has been fairly easy to read is providing traders with another setup. Crude oil has successfully broken, retested, and rejected $65 per barrel. The next upside objective would be $68 per barrel and finally the high made in November 2018.
The ECB press conference earlier today presented an unchanged interest rate and stance on monetary policy. Moving forward, many of the central banks are looking to not ‘jump the gun’ in light of lower Covid cases and record vaccinations.