After an important Jackson, Powell consistent attempt at persuading (or forcing) equities higher is coming to an end and it is time for a round of chart updates across the board.
This sort of tendency, which toys with the idea of tapering and rolling up purchases should be seen as such; USD shorts are increasingly less appropriate; but here the dominating factor between the two currencies is the transition to CBDCs and a race to the bottom. The well being and woes of China who are already miles ahead in their fourth beta test, will determine effectively who cancels the currency first.
A very plausible move throughout 2020 since buyers remained hesitant to play the safety leg. I was hesitant to play the leg higher but this decision made things a lot easier. The correct course now is switching to a new course, this time an ABC sequence towards 7.31x (+13% from current levels) into 2022 to offer lasting protection, invalidation for this move will come below March 2018 lows (-3% from current levels).
This sort of tendency, which toys with the idea of tapering and rolling up purchases should be seen as such; USD shorts are increasingly less appropriate; but here the dominating factor between the two currencies is the transition to CBDCs and a race to the bottom. The well being and woes of China who are already miles ahead in their fourth beta test, will determine effectively who cancels the currency first.
A very plausible move throughout 2020 since buyers remained hesitant to play the safety leg. I was hesitant to play the leg higher but this decision made things a lot easier. The correct course now is switching to a new course, this time an ABC sequence towards 7.31x (+13% from current levels) into 2022 to offer lasting protection, invalidation for this move will come below March 2018 lows (-3% from current levels).
Trade closed: target reached:
a whisker away from 7.3x; good timing to start closing positions for those still holding longs in a +12% swing
