The pair is at a key level of 1.32 and has been seen ranging between an approx 85 pip zone, dependent on Oil and DXY movement we could see one of either two potential movements.
Scenario 1: Short
Despite the US China trade tensions and the US treasury labelling China recently as currency manipulators, we could see a rise in Oil prices (WTI), this in conjunction with drop in DXY strength could be supporting factors for a short as this pair hovers around 1.32.
Scenario 2: Long
"Mounting US-Sino trade risks weigh negatively on the global growth outlook, eventually clouding the crude demand outlook and rendering oil-negative"; negative movement of Oil with sellers in control could cause the pair to continue ranging or possibly move upwards with support of DXY- continuation in upside movement subsequent to the bounce off 4hr TL.
DXY:
Oil:
Scenario 1: Short
Despite the US China trade tensions and the US treasury labelling China recently as currency manipulators, we could see a rise in Oil prices (WTI), this in conjunction with drop in DXY strength could be supporting factors for a short as this pair hovers around 1.32.
Scenario 2: Long
"Mounting US-Sino trade risks weigh negatively on the global growth outlook, eventually clouding the crude demand outlook and rendering oil-negative"; negative movement of Oil with sellers in control could cause the pair to continue ranging or possibly move upwards with support of DXY- continuation in upside movement subsequent to the bounce off 4hr TL.
DXY:
Oil: