President Trump has coronavirus— this information rocked the financial markets today. When this news hit the screen, stock exchanges worldwide immediately collapsed. Currencies were a little less affected by this, and speaking of currencies we will focus on the dollar in particular on today’s Trading Sniper.
First let me show you the Dollar Index, which is in a perfect place for a bullish bounce, so the technical situation is generally promoting the positive scenario for the Greenback.
DXY is currently bouncing from a combination of dynamic and horizontal support. What is more, the price is trying to create an inverse head and shoulder pattern. Price closing a day above the neckline of this formation will be a proper signal to go long.
In this case, EUR/USD should be bearish, right? Right, and it is. Most recently, the price bounced from the crucial 1.177 resistance and the upper line of the flag. What is more, in a shorter term, the price created a wedge pattern and already broke its lower line. As long as we stay below all those resistances, the sentiment is negative.
We can see a very handsome setup with the stronger Greenback on the AUD/USD pair. Most recently, Aussie bounced from the crucial horizontal resistance around 0.72. Apart from the previous price movements, this level was important because we got two Fibonacci lines there, 61,8 and 50%. In addition to this, the price formed the flag and broke its lower line. All that together creates a negative perspective for this instrument.