Looking into the weekly chart for the USD, it appears that the USD weakness should be ending soon, and in the coming weeks, going into August, there should be a turnaround, and spike of the USD.
Technically, this is a resumption of a larger bullish trend for the USD. Even as the weekly MACD is in the bearish territory, expect and watch as it returns to the bullish territory in the coming weeks. The USD futures should be attempting to break above the 55EMA, and once it does, the underlying bullish trend will continue, albeit stronger if so.
IF the scenario plays out as expected, there will be consequences...
For example,
1. Bonds yields should drop further as risk aversion starts again;
2. Equity markets should be selling off, possibly in another waterfall scenario;
3. Trigger is likely to be a biological induced financial event, as opposed to 1H2020 sole biological event trigger;
4. Extreme volatility thunderstorms arise...
It is still early days, and dark clouds are forming now... currently, neutral on this, so let’s see how it develops...
Technically, this is a resumption of a larger bullish trend for the USD. Even as the weekly MACD is in the bearish territory, expect and watch as it returns to the bullish territory in the coming weeks. The USD futures should be attempting to break above the 55EMA, and once it does, the underlying bullish trend will continue, albeit stronger if so.
IF the scenario plays out as expected, there will be consequences...
For example,
1. Bonds yields should drop further as risk aversion starts again;
2. Equity markets should be selling off, possibly in another waterfall scenario;
3. Trigger is likely to be a biological induced financial event, as opposed to 1H2020 sole biological event trigger;
4. Extreme volatility thunderstorms arise...
It is still early days, and dark clouds are forming now... currently, neutral on this, so let’s see how it develops...
Comment:
Two weeks later, it is up trending!