Lots of support here to go long SO FAR. I am watching that level for a reaction and a reason to enter again. I most likely will BUY the shorts because they will also buy themselves to cover their losing positions
Of course, I am bearing in mine that the USD data must remains positive.
It is a quiet week this wek until Thursday. So, I have my alarm set at 102.30 just in case it is reached before Thursday.
My quarterly target remains the same. Of course, like the GBPUSD target of 1.26, 1.26 and 1.16, it may be met sooner than later.
Risks: Risk-off mood swings (same as before). And, if that happens, prepare a long at the 102.55 level. Targets are all the same.
What has me a little concerned is that the GDP coming out won't reflect this months amazing retail sales data for the US economy. Retail sales does play a big chuck of the GDP economic pie. And last month, retail sales were -0.2%, so this may effect the GDP; however, going forward, we know that we have investment demand, and with the US election coming up (given that Hillary Clinton stands a chance at winning), I remain confident in the dollar, and I believe that a pullback will cause investors to buy at falling and bargain prices.
So, I will have to read the data coming out and break down the GDP to make sense of it all, and then make an informed decision about it, taking into account our quarterly view. We may in the end just ignore any bad number and look at other economic points that are good for the GDP a month or two from nice, like this months retail sales.
Going in with an open mind! Happy Halloween!