Again, this is a crazy time to be in the markets. We could experience markets on steroids in the coming months. Therefore, the kind of trader you are - risk averse, Neutral or loving - may determine how you actually approach the markets.
This is how I'll be looking at the DXY in the coming week.
The FED, Monetary, Fiscal Policies & US Elections Factor
The FED purchased 3%+ more securities in the last two days of the week. Testimonies were also heard throughout the week with Powell trying to champion for further fiscal support. This may have been highly shrugged off by smart money as investors think the stimulus package by the Senate might not be voted for until after the US ELECTION, which is going to be a highly contested one. With weeks to go, Smart Money will be positioning themselves for the Election and not the COVID19 VACCINE.
Commitment of Traders
The most recent CTFT report shows that at least 2k more short positions were added. This implies that hedge funds are positioned for the a fall in DXY.
The Global Financial Markets Factor
Last week, the markets experience a market cap fall which could be equated to many countries' GDPs. With a backdrop of a surging second wave of COVID19 in Europe, it implies that the demand for the DXY is only going to increase.
Recommendation:
Interesting week ahead for the global economy & markets. I'll be looking out for the US #jobs REPORT, FED officials' remarks seeking to regain the narrative of responsiveness and effectiveness;
I'll also be expecting a retracement to the 0.382 fibonacci level before continuing higher. In the event the price breaks the resistance level above, a continuation of trend is expected.
I'll also be looking out for EURUSD, XAUUSD, GBPUSD, USDCAD & USDNOK Pairs as they are best positioned for either a trend continuation or retracement.
This is how I'll be looking at the DXY in the coming week.
The FED, Monetary, Fiscal Policies & US Elections Factor
The FED purchased 3%+ more securities in the last two days of the week. Testimonies were also heard throughout the week with Powell trying to champion for further fiscal support. This may have been highly shrugged off by smart money as investors think the stimulus package by the Senate might not be voted for until after the US ELECTION, which is going to be a highly contested one. With weeks to go, Smart Money will be positioning themselves for the Election and not the COVID19 VACCINE.
Commitment of Traders
The most recent CTFT report shows that at least 2k more short positions were added. This implies that hedge funds are positioned for the a fall in DXY.
The Global Financial Markets Factor
Last week, the markets experience a market cap fall which could be equated to many countries' GDPs. With a backdrop of a surging second wave of COVID19 in Europe, it implies that the demand for the DXY is only going to increase.
Recommendation:
Interesting week ahead for the global economy & markets. I'll be looking out for the US #jobs REPORT, FED officials' remarks seeking to regain the narrative of responsiveness and effectiveness;
I'll also be expecting a retracement to the 0.382 fibonacci level before continuing higher. In the event the price breaks the resistance level above, a continuation of trend is expected.
I'll also be looking out for EURUSD, XAUUSD, GBPUSD, USDCAD & USDNOK Pairs as they are best positioned for either a trend continuation or retracement.
Trade active:
Just as planned. The medium term bullish trend still holds
