Markets on Tuesday: Bears Dump the USD – Again
Rowan Crosby • 1 min read
US traders might have been absent for the Martin Luther King day holiday, but that didn’t stop the USD getting another hammering. On Friday we saw the DXY get an almighty hammering. I suspected we would follow through and sure enough, that’s what happened on Monday trade.
That meant the majors were all in the firing line. The EUR/USD continued its charge, while the commodity currencies were strong early on.
The USD/JPY was one of the big fallers as we took out what was a big support level. 111.00 had been holding us up and that quickly got taken out with price now eyeing the 110.00 mark.
13,000 was an important level for Bitcoin (BTC) and once again it held up. There was a rally towards the 14,000 level but as the trading day wore on, we saw some weakness set in. Each day there are increasing reports on South Korea looking to ban all cryptocurrency trading. China appears like they want to stamp them out completely as well.
What’s in store for the USD?
The US Dollar Index (DXY) has been red for some time now, so it really is just a matter of time until we take out the net key target below. As it stands that’s 90.00. Another important round number.
The momentum is so strong that I would suggest selling all pullbacks with a downside target of 90.00. The USD is only headed one direction at the moment.