The USD Pull Back as Oil Get Crushed
Rowan Crosby • 1 min read
The USD fell away yesterday and in my opinion, it was just a pullback we had to have.
After breaking out over the last few session, price has eased off from the highs. That went hand-in-hand with stocks also falling during the US session, but in comparison to the prior day, the moves were quite muted really.
The big news of the day was a technical agreement on a deal between the EU and the UK on Brexit. This has been slowly but surely coming along over the last few weeks and the GBP has been trading accordingly.
The major mover yesterday was clearly Oil. After Donald Trump tweeted about OPEC the day before, oil had really tanked. It was down nearly 8% on the session and we are well off the highs now and making a run for $50.
The USD Outlook
The DXY is trading back at the resistance level turned support just above 97.00.
The nest major level is 97.80,to the upside and like I often say, I don’t expect to just bust through these levels in quick succession.
I would rather see a slow steady build up, with price just below the level, ready for a breakout.
Invariably, a quick run up into resistance gets met with selling and a pullback, before it can reload.