Playing the Dollar Rally....
As I mentioned to you I am playing the Dollar to the upside. There is not much risk at these levels and I am doing it with the USD/CHF. Now you can do it with the index if you are a futures trader or to the downside if you trade the EUR/USD. You could see a rally in the USD/JPY but I don't think as powerful. Especially if stocks continue to fall as I think that they will.
You can see from the chart below that I took a long earlier and it held well but it eventually stopped me out. I did pick up minimal profits but I reentered on the low on a pattern I usually wait to see. So knowing that this was a key area for the pair I entered. I have been riding the pair higher now for a few days and I think it is headed much higher over the course of the next few months as you can see by my view. However you may wish to play the pullback if you have a chance.
The Dollar has been rallying itself rather well since bottoming around the 88 level which I had told you to expect. There is usually a shake out and that is what has been going on. With today's FOMC meeting soundly behind us and the prospect of interest rate rises this year (supposedly three to four) we will see how well the Dollar strengthens. I think in the near term you could expect it to rally until at least the 92.50 area and it is a doable target.
This is also why I have been shorting gold as of late. You have heard my cries from the roof tops before this to do that but I am not sure you listened. There is still a lot of talk of gold breaking out to new highs and setting new records over the coming years. While I am unsure of golds status at the moment in the near term I would not expect any major rallies for the next month or two. There simply is no reason for it to race higher.
You knew my stance on the Dollar well ahead of time anyway.
A look at the chart below will tell you I put my money where my mouth is. How far and how high it will go is anyone's guess but with the death of the Dollar knells growing louder by the week I suspect that we won't see any weakness in the Dollar for the forseeable future.
Cheers!
You can see from the chart below that I took a long earlier and it held well but it eventually stopped me out. I did pick up minimal profits but I reentered on the low on a pattern I usually wait to see. So knowing that this was a key area for the pair I entered. I have been riding the pair higher now for a few days and I think it is headed much higher over the course of the next few months as you can see by my view. However you may wish to play the pullback if you have a chance.
The Dollar has been rallying itself rather well since bottoming around the 88 level which I had told you to expect. There is usually a shake out and that is what has been going on. With today's FOMC meeting soundly behind us and the prospect of interest rate rises this year (supposedly three to four) we will see how well the Dollar strengthens. I think in the near term you could expect it to rally until at least the 92.50 area and it is a doable target.
This is also why I have been shorting gold as of late. You have heard my cries from the roof tops before this to do that but I am not sure you listened. There is still a lot of talk of gold breaking out to new highs and setting new records over the coming years. While I am unsure of golds status at the moment in the near term I would not expect any major rallies for the next month or two. There simply is no reason for it to race higher.
You knew my stance on the Dollar well ahead of time anyway.
A look at the chart below will tell you I put my money where my mouth is. How far and how high it will go is anyone's guess but with the death of the Dollar knells growing louder by the week I suspect that we won't see any weakness in the Dollar for the forseeable future.
Cheers!
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