The USD has moved lower for 8 straight days.
Today with the ECB news, I chose to stay away from the EURUSD. The GBPUSD and AUDUSD had greater upside to our daily targets. The GBPUSD required an initial 25 pip stop loss for a potential 74 pips to our daily target at 1.2612. Both trades were very good.
After an initial move lower as the U.S. session got underway, the pairs reversed and a long was taken after the news in both the GBPUSD and AUDUSD. Both pairs moved in tandem and the EURUSD mirrored the move.
Price moved higher taking out its Asian session high, retested the level and proceeded higher to our target where we exited the trade.
If the USD continues to decline, the next test will be the December low, then the June 2019 low. Tomorrow if the NFP number is a major disappointment then we may see 96.34 on the DXY. I would be very surprised if by next week, we don’t see a bounce…even if short-lived.
Remember it’s never a good idea to fight the market.
Good luck with your trading!
