Market-wide confusion and bewilderment over the lengthy US-China trade debates have caused capital markets to cover their gains early for the last trading session of the week, and take profit early ahead of the weekend.
Contradicting trade headlines regarding the roll-back of tariffs on Chinese goods are shaking global financial instruments into a state of unease. But, what has been consistent among spot currencies (forex market) is the constant demand and luster for the greenback, despite the mixed reportings from top White House officials. At the moment, there is a mild risk averse tone across asset classes, with global equities consolidating their gains from earlier, and WTI crude oil tumbling near the $56.50/barrel on US supply glut fears. The greenback appears to be fairly bid, and benefiting from a combination of good US economic data, weaker commodities, and safe haven demand, which inspired further misery for most dollar-denominated currency pairs, like EUR/USD, AUD/USD, and GBP/USD.
In today’s trading webinar, we explained how the US Dollar rally is showing clear signs of being too extended, overbought, exhausted, and that the buck is due for a market correction. We identify technical reasons for this assessment, and explain how to execute certain trades that would favor a soft US Dollar short-term bias. We also reviewed price action in DXY (US Dollar), USD/DKK, EUR/USD, EUR/AUD, and CAD/JPY to identify technical setups that could be forming for trade entry.
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Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.