My current bias for the dollar is very much bearish, as price has broken structure to the downside once again. While I don’t trade the dollar directly, I use it as a confluence to confirm trade ideas for other pairs like GBP/USD (GU) and EUR/USD (EU). Since I’m looking to short both pairs right now, this bearish outlook on the dollar makes sense.
In scenario (B),...
The dollar made a strong bounce off the 100% ABC equal leg correction. This could see dollar continue to strengthen towards 97.74. It will be a nice idea to sell XXXUSD pairs and buy USDXXX pairs.
