In today’s live trading session, we determined our bias for the US Dollar Index (DXY) and then we found a trade idea for EURAUD.
This morning the US Dollar Index showed a great deal of movement as price dropped 0.42% to the downside. This type of movement is rare for a Monday morning, but the markets seem to have a pep in their step this week. Right now the DXY is at a key level of 93.25, this price point can either act as a support or price can break this level, and head lower to 93.00. Either move will have consequences for the major currency pairs.
For the rest of the session, we focused on a potential trade idea for the day. We typically avoid trading Monday’s as they tend to be slow and have a tendency of creating fakeouts. But, as stated, this Monday seems to be different. After some careful examination, we found a potential buy setup for EURAUD. We will be waiting for the daily candle closure to confirm our bias for this trade setup.
The fundamental schedule for this week is fairly clear until Friday, where we will have the European Union release important PMI data. A lack of fundamental news can either mean a consolidated trading week or it can provide ideal trading conditions. Let’s see which scenario we get. As always, be safe and trade responsibly!