On Friday, our computer screens displayed better than expected data from the American job market. That helped the US dollar, so we will focus on this instrument in today's’ trading sniper.
Let me start with the Dollar Index DXY first. Here, the price managed to bounce from the crucial support on the 92.6 and Friday managed to break the mid-term down trendline. That breakout gives us a positive sentiment and opens the door for long-term bullish correction.
Our second instrument is USD/CAD, which on Friday was influenced not only by data from the US but also from Canada. Both came above expectations but the positive sentiment towards the U.S. currency is dominating. This does not come unexpectedly as the price created a false bearish breakout below very important horizontal support on 1.33. Again, false breakout worked and gave a strong signal in the opposite direction – north. The last thing to do here, for a proper long-term buy signal is to break the main down trendline.
I will finish with Cable, which confirms the bounce from the 1.317 resistance. Sellers did this with a double bottom formation. A breakout of the psychological barrier on 1.3 will definitely confirm the negative sentiment. The potential target for this movement is the mid-term up trendline, connecting higher lows since the end of June.
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Correction On The USD Has Begun
Published 08/10/2020, 04:56 AM
Updated 01/03/2021, 09:10 AM
Correction On The USD Has Begun
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