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The DXY is in no-man's land

The Us Dollar Currency Index (DXY) has been trading non-directionally inside of a range since the beginning of July. This has made the USD trade quite tricky since there is no real direction at the moment, even though we continue to be fundamentally bearish. Last week the second Coronavirus Stimulus Bill was rejected by Democrats in Congress making US Equities continue its bearish move erasing last month's gains. This off course was also triggered (in its majority actually) by the tech selloff. Returning to the USD. The DXY is capped by the 93.70-94.00 level to the upside and the 92.10-91.75 level to the downside. I see 2 possible scenarios: Bullish scenario and the least probable. We get a rally towards the 95.75-96.00 level for the next big bearish move. Bearish scenario. After the last retest and rejection of the 93.70-94.00 level we continue the bearish move towards the 89.40 level. Just like we did back in June. If you want to receive my trade ideas on the USD you can subscribe and become a PRO member for only $34.95

We are going to be looking at these both scenarios but we will definitely focus on looking for shorts below 94. At the moment I'm writing this Gold is up almost 1% for the day and our trade is in profit. A move below the bottom of the range would trigger the next Gold rally in my opinion. Trade safe everyone, Orlando "Success isn't owned. It's leased, and rent is due every day." - J. J. Watt

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