Here we are dealing with a sensitive situation, which we have discussed previously at earlier opportunities. One should not overlook the underlying strength of the dollar given it is the centrepiece of the currency board. After clearing the vaccine and all is roses newsflow, the next chapter of covid and risk is here into December - I am expecting dollar to find some short-term support, investors will take cover under the table while risk rushes into the room for the coming weeks.
The manoeuvre is intended to provide a retrace from the impulsive leg down, but not too far. We must defend skilfully as sellers are already 'quite in love' with the dollar devaluation story. However, markets do not move in straight lines and some legs are worthy of participation. I personally think a pullback towards 94/95 before we can continue with artificial devaluation towards 80/75 in 2021.
Thanks as usual for keeping the feedback coming 👍 or 👎
Looking at the price action for the past 2 weeks, it looks like the plan is going to bring it down considerably, similar to the kind of drop starting on 26 May and 1 July.
Come Monday, it may go all the way down once 91.75 is broken.