In the Forex markets this morning, the DXY continued to decline between a drop in yields and following the toing and froing in coronavirus relief discussions where there has been mixed commentary as House Speaker Pelosi and Senate Minority Leader Schumer noted that the sides remain far apart. On the other hand, White House Chief of Staff Meadows suggested substantial progress on eviction protections and unemployment was made, while Treasury Secretary Mnuchin wants to have an understanding by end of the week so that legislation can be passed but also suggested they will not go anywhere near to the USD 3.4tln for the cost of the relief bill. The weaker dollar spurred its major counterparts with EUR/USD extending above the 1.1800 level and could be on track for another bullish leg up to 1.2000. I've marked on a range using the body of the candlesticks from the 29th and 30th August as this is where the recent pressure is held. A firm closure above 1.1850 on the 4-hour will signify continued bullish direction.
As I am awaiting further price action, I will class my bias a neutral for the time being and any updates on this pair will be updated immediately. Downside scenarios are any potential wicks briefly into the region below the last HL could become quite manipulative and we should trade this pair with lower risk during these times around psychological levels.
As I am awaiting further price action, I will class my bias a neutral for the time being and any updates on this pair will be updated immediately. Downside scenarios are any potential wicks briefly into the region below the last HL could become quite manipulative and we should trade this pair with lower risk during these times around psychological levels.