Next week is crucial! Dollar coming close to key level
As I mentioned a lot of times in my posts that USD is the key to all asset classes. We saw stocks, commodities under pressure this week.
As USD is not far away from the pivot zone on the daily chart, next week will be crucial. Here are two scenarios:
1. USD is too strong that it takes out the pivot as well as the MAs. Growth stocks, commodities will be under pressure. We should look for short opportunities(intra-day and short swing). Value stocks will perform relative better due to valuations.
2. USD hit the pivot and retreats from the zone: On the contrary, we should look for long setups for commodities and stocks.
I don't think the downtrend is over cuz the 120 MAs are still far away. Trend won't change overnight. Be patient!
As USD is not far away from the pivot zone on the daily chart, next week will be crucial. Here are two scenarios:
1. USD is too strong that it takes out the pivot as well as the MAs. Growth stocks, commodities will be under pressure. We should look for short opportunities(intra-day and short swing). Value stocks will perform relative better due to valuations.
2. USD hit the pivot and retreats from the zone: On the contrary, we should look for long setups for commodities and stocks.
I don't think the downtrend is over cuz the 120 MAs are still far away. Trend won't change overnight. Be patient!
Comment:
Yep. the zone I draw works well. As dollar weakened, you can see how other assets(gold and stock index) performed in the past 3 days. Correlation does matter for asset allocation even for trading.
Comment:
Exactly as I anticipated, so what's next? very likely, sideway for awhile before choosing the direction.
plan your trade and trade your plan
