US Dollar Talking Points:
- The US Dollar remains messy on a near-term basis, and EUR/USD[1] may be showing another bear trap scenario.
- USD/CAD[2] has begun to sell-off, opening the door for short-side scenarios; while AUD/USD[3] may remain as attractive for long-USD scenarios.
- DailyFX Forecasts are published on a variety of markets such as Gold, the US Dollar or the Euro and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.[4][5][6][7][8][9]
The US Dollar remains in a vulnerable, albeit trendless short-term state at the moment. Last week’s dizzying sell-off came in on the back of the Friday fireworks revolving around US-China tariffs. This pushed the Greenback down to fresh weekly lows, but this week opened with a bullish gap and buyers continued to push the bid yesterday, scaling prices back-above the 98.00 level on DXY[10] temporarily. This could make for a difficult environment for directional prognostications on the Greenback; but, there are various spots of interest where either the short or long side may become attractive.
US Dollar Two-Hour Price Chart: Change-of-Pace to Start the Week
Chart prepared by James Stanley; US Dollar on Tradingview[11][12]
USD/CAD Breaks Down, Bearish Potential
USD/CAD has been fairly clean over the last few months despite the fireworks on the fundamental side of the US Dollar equation. The pair put in a very noticeable sell-off in June as both USD-weakness and CAD[13]
