The coronavirus and pending fiscal stimulus package in the U.S. is currently weighing on the USD. The DXY has moved below its June low. A test of the March low looks like the next target.
As the USD continues lower and the “risk on” sentiment continues a conservative short was taken today in the USDJPY risking 11 pips for a potential 22 pips to our daily target at 106.86.
What appeared to be a lackluster session picked up in the U.S. session overlap and continued after Europe and Britain concluded their day.
The surprise for me was the delayed response by the market to push the EURUSD above the 1.1500 figure. Some critical technical levels were taken out today in the majors.
U.S. Existing Home Sales is on the calendar for tomorrow.
Good luck with your trading!
