The US Dollar spent much of yesterday selling off and as a result trades for USDJPY and USDCHF raked in decent profits for traders. As of right now, the Dollar is at crossroads in deciding which direction it wants to go.
Price action analysis completed yesterday determined a bearish bias for the DXY. A quick technical outlook on USDJPY and USDCHF showed short trades that were primed to enter. These intraday trades have provided traders with around +100 pips of profit. Since then both trades have reverted back to entry as the Dollar made a rally early this morning.
Currently, the US Dollar sits at 90.30 indecisive of where it wants to head next. The smaller time frames are indicating a tug-of-war between bulls and bears which may last until Powell’s speech tomorrow. On one hand, the Dollar can push to this week’s high of 90.72. On the other hand, the Dollar can respect the long-term downtrend and make a push back down to 90.00.
Tomorrow’s unemployment claims and Powell’s speech will provide more clarity on the Dollar and consequently many Forex pairs. Traders should shift their focus to some of the minors or commodities to avoid any surprises that may come tomorrow.