Gold Longs Setting up as Dollar Resumes Drop

The US Dollar Index (DXY) is set to resume its push lower as price spent much of the week in consolidation. As a result, the Forex majors and as well as commodities like Gold should push higher.

After creating a mini range between 91.150 and 91.400, the DXY has finally rejected the range high and is looking to push and break below 90.850. This is a significant level as this level represents the range low. A bearish break and closure below this level should take price to 90.000 over the coming weeks.

Once the Dollar starts to move, the majors and Gold often show the most promising trade setups. The precious metal Gold is looking to close bullish on the daily above 1811 which was the last significant lower high of the previous downtrend. This action, if successful, will most likely lead to a rally to 1845.

Among the majors and Gold, many of the popular cryptos such as Ethereum and Doge should also start to extend against the Dollar. With Covid-19 still being a problem for months to come, the Dollar is expected to stay in its bearish ways.