MOVING WITH PURPOSE - Hope everyone enjoyed the market long weekend. Clearly there wasn't much volatility in Monday trade and so, we are finally back at it today. Looking at the price action over the past several days, it's clear I was too patient and missed the recovery rally in the Buck. But I'm ok with that. These things happen and we just move on to the next opportunity. The truth is, we may yet still see some Dollar selling, although the break back below the previous neckline of the EURUSD double bottom in the 1.1050 area, and the surge in USDJPY back towards 122.00, suggest there is a legitimacy and purpose to this Dollar move. I don't chase trades and won't be jumping on the Dollar now that it's moved a nice amount. But it does look like the Dollar is trying to reestablish itself.
DELAYED REACTION - As far as the trades go, I have jumped back into an SPX500 short at 2126. Since exiting for a loss the other week, the market has shown no ability to follow through with the latest record high break, and the pullback once again encourages the prospect for some form of a meaningful top. Fundamentally, the trade lines up, with last week's hotter US CPI print and comments from the Fed Chair that a rate hike in 2015 is still on the table, supporting the bearish case. I'm not sure the market has fully reacted to the events of last Friday, given the holiday weekend, and perhaps we will see some reaction in today's trade that opens a breakdown in stocks. Otherwise, I'm considering a long EURGBP trade and will be looking to buy back into AUDNZD on a dip into the 1.0500s.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
Recommended Content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.