Here we are tracking a base forming in Copper ahead of July Fed. A good time to update the chart, for those following the previous Copper short chart (see attached: "Copper next to lose its shine... Strong Dollar prevails") the offer is naturally expiring with the pivot in Dollar flows.
The invalidation for this setup comes with a daily close below the 2.528 lows whilst to the topside initial targets at 2.826. Taking this key resistance at 2.826 will unlock a very aggressive move to take the 2018 highs out as markets begin pricing recession.
Good luck all those trading this one in live accounts.
Strong speculation on the dollar prevails, however macroeconomic cycles are devaluing the currency at a steady rate for another two weeks according to seasonal trends. Causing all USD quoted assets (XXXUSD) to rise, commodities, cryptos and currency pairs, unless the base is devaluing at the same rate or faster, which is unseen afaik.
btM_Afta
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It also means sir that USDCLP will go down too right ? it´s already going down, but it looks like more to come right? can you take a look at USDCLP please, thanks !!
Deep-Peat-Shark
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@Dguaman, macroeconomic cycles are currently strongly devaluing USD and will likely continue for another two weeks at least. Be aware of very strong counter macro speculation this season.
ridethepig
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Agree @ArnaudKleinveld .. EM FX a major winner going into the G20 weekend.
ridethepig
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Here @Dguaman, we have an update to the USDCLP chart
byStoyan
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Thank you good Sir! Will rise of copper be also positive for Aussie dollar?
ridethepig
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Yes exactly @byStoyan ... you can read more on the correlation here
byStoyan
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@ridethepig, thanks again. Then I will carefully look for an entry to add to my current positions in AUDCHF. The swap there is in my favor and I can wait as long as needed. I was just wondering if it will dig any further. It’s historical low and Australia’s rate cut is yet to come. I hope the lower rate is already sold and we stand on the bottom, with smiling faces looking up!
Have a great weekend!