Been watching the DXY closely for a few months now as i mainly trade Bitcoin and its heavily pegged to the strength of the USD mainly from global arbitrage. I was expecting a huge retrace on BTC when the DXY started to recover from those V bottoms but it quickly got shot down again when the US markets started to recover. BTC went on a run and hit close to 14k, and now we are starting to see a second recovery on the DXY.
I know this thing will probably still play buggery up to the US election but its no denying this is a heavy contributor to the movement of a number of global traded safe haven asset closes like gold silver bitcoin and other commodities. A mass recovery on the DXY could see some other markets really bleed down hard so im watching a few for some short entries but will the recovery be short lived leading to the election???
Im tipping towards around 96 before we see a halt and a breather for world markets for now but will follow it up in a week.
Definitely a lot of fear uncertainty and doubt out in the world right now. Pretty standard for election times I'd say. Fundamentally my gut is telling me this is a shakeout before assets fly.... Elections will end, "vaccine" will be released, stock market ATHs breached... then the stimulus and bailout continues and the dollar weakens.
DeNomics
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@beastedz, 100% a possibility, i guess my bias is telling me the markets need a good reset so i keep thinking the opposite.
But regardless of what i feel or think will happen ill still just trade what happens
beastedz
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@The_Grizzly_Bear, Can't go wrong with being flexible... as we saw in march those who were unable to change positions quickly missed some great opportunities both ways...