In yesterday's market musings blog, I spoke about the DXY being key for the direction I want to trade the majors in:

"For me, USD bias is all about whether price is above or below this zone and any day trades in the majors aren't going to come until we're above or below it."

Well with the dollar index weakening overnight and dropping to the bottom of the zone in question, it has definitely found some sort of support here:

If we're taking this as support holding, or at least looking like holding, then shorting the majors comes into play.

Taking a quick look at where each pair is sitting, it's the Aussie that caught my attention the most. Check out these intraday areas of previous support turned resistance that price has been reacting around:

That latest one is pretty nice. Let's see what sort of follow through we can get here, because if the DXY goes through support at the London open, it's just as likely to ping back, but for now it looks a good setup.

Best of probabilities to you.

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@danewilliams | Steemit Blog

Market Analysis

Twitter: @danewilliamsau