The Dollar Index is one of the most important charts right now. A weak dollar means looser financial conditions. This is good for US stocks, bitcoin and gold.
The fundamentals are bearish. Both the US and China want a weaker dollar. There are issues in the US bond market, and it's a self-reinforcing cycle as US stock positions need to be currency hedged.
The backdrop to all this is, of course, massive debt and dollar debasement with more money printing on the horizon.
I like the technical picture here, and it's not a bad spot to add to shorts or enter fresh ones. Ideally, we see a pullback to 1.12 on the EUR, but we might not get it, so adding a bit now here is ok.
As always, remember trading is about risk-adjusted returns, so use a stop and keep your position size small unless you are very experienced.
The fundamentals are bearish. Both the US and China want a weaker dollar. There are issues in the US bond market, and it's a self-reinforcing cycle as US stock positions need to be currency hedged.
The backdrop to all this is, of course, massive debt and dollar debasement with more money printing on the horizon.
I like the technical picture here, and it's not a bad spot to add to shorts or enter fresh ones. Ideally, we see a pullback to 1.12 on the EUR, but we might not get it, so adding a bit now here is ok.
As always, remember trading is about risk-adjusted returns, so use a stop and keep your position size small unless you are very experienced.
Join over 42,000 traders and get the Forex Course for Smart Traders - 17 in-depth lessons - always 100% free at MarketMates.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join over 42,000 traders and get the Forex Course for Smart Traders - 17 in-depth lessons - always 100% free at MarketMates.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.