The Dollar is trying to muscle its way through previous highs but is having a hard time at 91.200. This was the previous high made before 2020 ended. As it struggles, certain pairs and commodities are gearing up for moves to the upside.
There is an interesting intraday trade for GBPUSD. This pair has been stuck in a 4hr range and has respected both the bottom and top of the range consistently. This afternoon price printed a hammer at the bottom of the range, which has given price action traders a green light to enter long with an excellent risk-to-reward ratio.
At last, US Oil has satisfied the criteria for an entry long. Yesterday, price printed a bullish closure on the higher time frames above $54 per barrel. This was the last requirement before traders can safely enter long. In addition to technical analysis, confidence in Covid-19 vaccinations has given Oil a fundamental boost.
Speaking of the Dollar, one cannot forget tomorrow’s ADP job release. This release will report the number of jobs added excluding the government and the farming sector. Current forecasts show an addition of 48,000 jobs. Such a result may bode well for the DXY.
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- Read yesterday’s breakdown: DXY to 91.90? + USDJPY Swing Long Priming